Directory UMM :Data Elmu:jurnal:I:International Journal of Educational Management:Vol12.Issue4.1998:
Critical success factors for international education
marketing
Tim M azzarol
Curtin Busine ss Sc ho o l, Curtin Unive rsity o f Te c hno lo gy, Pe rth, Australia
This paper draws on the
fi ndings of a survey of 315
education institutions from
Australia, Canada, New
Zealand, the UK and the USA.
Respondents were asked to
rate their institutions’ overall
performance on a series of 17
items that an examination of
the literature and previous indepth interviews identifi ed as
being critical to the success
of education institutions
seeking to market themselves
internationally. A factor
analysis of these items identifi ed four underlying dimensions. Promotion and Recruitment, Image and Resources,
People and Culture and Coalition and Forward Integration.
The relative success of these
institutions was then measured using a scale consisting
of four indicators relating to:
growth in enrolments,
demand, short to mediumterm outlook and fi nancial
benefi ts. A logistic regression
model was then constructed
to identify which of these
success factors were possible
determinants of institutional
success. Two factors, Image
and Resources, and Coalition
and Forward Integration were
found to be signifi cant predictors of market success.
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [ 1998] 1 6 3 –1 7 5
© MCB Unive rsity Pre ss
[ ISSN 0951-354X]
The economic importance of
international education
Th e deca des of th e 1970s a n d 1980s w itn essed
a r a pid expa n sion of th e ser vices sector
w ith in m ost in du str ia lised cou n tr ies (Blois,
1974; P lu n k er t, 1990). For exa m ple, in th e
per iod 1969-70 th e ser vices sector of th e Au str a lia n econ om y con tr ibu ted 54 per cen t of
gr oss in du str y pr odu ct. Th is h a d gr ow n to 63
per cen t by 1984-86 (Cla r k , 1988, p. 61). In 1992
th e ser vices sector con tr ibu ted over 66 per
cen t of GDP a n d a ccou n ted for a bou t 78 per
cen t of a ll em ploym en t (ACIIC, 1993). Th is is a
situ a tion com m on to th e US, J a pa n , Ca n a da ,
th e UK a n d Ger m a n y, wh er e between 60 a n d
70 per cen t of a ll em ploym en t is a bsor bed by
th e ser vices sector (Du n n in g a n d Ku n du ,
1995).
On e of th e m or e sign ifica n t ser vice in du str ies th a t em er ged in th e 1980s a n d 1990s is
in ter n a tion a l edu ca tion . Th e con tr ibu tion of
in ter n a tion a l edu ca tion to th e Au str a lia n
econ om y ca n be ga u ged by a n a ssessm en t
u n der ta k en by th e Depa r tm en t of E m ploym en t, E du ca tion a n d Tr a in in g (DE E T, 1993).
Th is estim a ted th e in ter n a tion a l edu ca tion of
fu ll-fee payin g over sea s stu den ts (F F P OS) h a d
gen er a ted $1.4 billion in tu ition fees a n d livin g expen ses, wh ich pla ced it close to wh ea t
($1.5 billion ) a s a n expor t ea r n er (Str ick la n d,
1995, p. 46). By 1995 th e officia l va lu e of expor t
in com e fr om over sea s stu den ts to Au str a lia
w a s $1.9 billion . In th e sa m e yea r in ter n a tion a l edu ca tion a ccou n ted for 9 per cen t of
Au str a lia ’s tota l ser vice expor ts com pa r ed
w ith less th a n 3 per cen t in 1985 (Ma zza r ol et
a l., 1996).
Accor din g to th e Wester n Au str a lia n
Depa r tm en t of Com m er ce a n d Tr a de, in 1992
in ter n a tion a l edu ca tion in th e sta te in volved
275 in stitu tion s, pr ovided em ploym en t for
3,786 people a n d gen er a ted a r ou n d $100
m illion in r even u es (DCT, 1993, p. 22; Rowe,
1995, p. 412). F u r th er, th e in ter n a tion a l edu ca tion in du str y in Wester n Au str a lia h a d exper ien ced em ploym en t gr ow th over a fi ve-yea r
per iod of 27 per cen t, a n d w a s com pa r a ble to
m in in g, a gr icu ltu r e a n d for estr y a s a n in du str y su ccessfu l in gen er a tin g expor t in com e
(Rowe, 1995, p. 415).
Th is is a pa tter n th a t h a s been exper ien ced
in oth er cou n tr ies. For exa m ple, a ccor din g to
th e Gover n m en t of Ca n a da in 1991 in ter n a tion a l stu den ts con tr ibu ted a n estim a ted
C$1.5 billion to th e Ca n a dia n econ om y a n d
gen er a ted a ppr oxim a tely 19,000 jobs for
Ca n a dia n s (MSS, 1993). Th e USA, wh ich is
h ost to th e m a jor ity of th e wor ld’s in ter n a tion a l stu den ts, h a s estim a ted th a t its u n iver sities a n d colle ges gen er a ted a tr a de su r plu s
of $6 billion in 1993 com pr isin g a bou t 10 per
cen t of th e tota l US ser vices tr a de su r plu s
(E va n s, 1995). In a ddition to th e r even u es
gen er a ted dir ectly fr om tu ition fees, a fu r th er
$3.6 billion is in jected in to th e USA econ om y
fr om in ter n a tion a l stu den t spen din g on
a ccom m oda tion , food a n d oth er item s (Scott,
1995).
The nature of education as a
marketable service
Despite th e im por ta n ce of ser vices to
n a tion a l econ om ies th ey h ave ten ded to be
ign or ed or over look ed, du e la r gely to th eir
in ta n gible n a tu r e (LE K, 1994, p. 18). P r ior to
th e 1960s a n d 1970s ser vices m a r k etin g w a s
n ot distin gu ish ed a s a sepa r a te field of in vestiga tion (Ber r y a n d P a r a su r a m a n , 1993; F isk
et a l., 1993). On e r ea son given for th is is th e
difficu lty a ssocia ted w ith th e cla ssifica tion of
ser vices. As n oted by Lovelock (1991, p. 25):
“Ba sica lly th e r a n ge of ser vices is too br oa d
to a llow m ea n in gfu l, in -depth a n a lysis of th e
en tir e fi eld”.
F isk et a l. (1993) h ave tr a ced th e developm en t of ser vices m a r k etin g r esea r ch . Th e
tr a dition a l tr ea tm en t of ser vices in bu sin ess
a n d econ om ic liter a tu r e w a s to ign or e th em
a s in ta n gibles u sefu l on ly in su ppor tin g th e
m a r k etin g of goods. However, a s th e im por ta n ce of ser vices w ith in m ost n a tion a l
econ om ies gr ew du r in g th e deca des follow in g
th e Secon d Wor ld Wa r, th e level of in ter est in
ser vices a s a distin ct field of stu dy in cr ea sed
(Ber r y a n d P a r a su r a m a n , 1993). Du r in g th e
pa st 20 yea r s th e level of in ter est in ser vices
m a r k etin g h a s in cr ea sed, dr iven to a la r ge
exten t by th e in cr ea sin g im por ta n ce of ser vice in du str ies in m ost econ om ies (F isk et a l.,
1993).
[ 163 ]
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
[ 164 ]
Absen t fr om th is r esea r ch in to ser vices h a s
been a n exten sive exa m in a tion of edu ca tion
a s a specific m a r k etin g pr oblem . Lik e m a n y
oth er “pr ofession a l ser vices” edu ca tion h a s
ten ded to esch ew m a r k etin g (Mor ga n , 1991).
Despite th is n e glect, edu ca tion r em a in s a
ser vice ca pa ble of tr ea tm en t a s a n y oth er in
ter m s of m a r k etin g th eor y. In doin g th is, a n
im por ta n t sta r tin g-poin t is th e cla ssifica tion
of edu ca tion a s a m a r k eta ble ser vice.
Lovelock (1983) h a s offer ed a u sefu l con ceptu a l fou n da tion for r esea r ch in to ser vices
m a r k etin g. Th is in volves five cr iter ia , ea ch of
wh ich is exa m in ed on fou r dim en sion s. Usin g
th is fr a m ewor k it is possible to descr ibe edu ca tion ser vices a s h avin g th e follow in g
ch a r a cter istics:
1 T h e n a tu re of th e ser vice a ct. Th e edu ca tion
ser vice a ct is dir ected a t people (th eir
m in ds r a th er th a n th eir bodies). It is pr im a r ily “people ba sed” r a th er th a n “equ ipm en t ba sed” (Th om a s, 1978), a n d in volves
la r gely in ta n gible a ction s (Sh osta ck , 1977).
2 T h e rela tion sh ip w ith th e cu stom er. E du ca tion in volves a len gth y a n d for m a l r ela tion sh ip w ith th e clien t a n d a con tin u ou s
deliver y of th e ser vice. Stu den ts h ave wh a t
Lovelock (1983) r efer s to a s a “m em ber sh ip” r ela tion sh ip w ith th e ser vice
pr ovider. Th is offer s th e ser vice pr ovider
a n oppor tu n ity to develop str on g clien t
loya lty a n d en h a n ced clien t ser vice
fea tu r es.
3 T h e lev el of cu stom iz a tion a n d ju d gem en t
in ser vice d eliv er y. Som e ser vices r equ ir e
gr ea ter cu stom iza tion a n d ju dgem en t on
th e pa r t of ser vice pr ovider s th a n oth er s.
Th e exten t to wh ich edu ca tion ser vices a r e
cu stom ized is va r ia ble. Sm a ll tu tor ia ls or
in dividu a l su per vision a r e obviou sly m or e
h igh ly cu stom ized th a n m a ss lectu r es. In
m ost ca ses th e exten t to wh ich th e ser vice
pr ovider exer cises ju dgem en t in m eetin g
th e n eeds of in dividu a l stu den ts is h igh .
Th is is pa r ticu la r ly th e ca se w ith tea ch in g
sta ff. A pr oblem a r isin g fr om th is is th e
possibility th a t qu a lity ca n be a ffected du e
to va r ia bility of ser vice deliver y (N ich olls,
1987).
4 T h e n a tu re of d em a n d rela tiv e to su pply. A
ser vice ca n in volve a w ide spr ea d dem a n d
(e.g. electr icity) or a n a r r ow on e (e.g.
in su r a n ce). At th e sa m e tim e th e a bility of
ser vices to be in cr ea sed qu ick ly to m eet
flu ctu a tion s in dem a n d ca n va r y. Wh ile
electr icity ser vices ca n be in cr ea sed fa ir ly
qu ick ly to m eet pea k dem a n ds, h otel
a ccom m oda tion is m or e difficu lt to r e gu la te. In edu ca tion th e dem a n d is su bject to
r ela tively n a r r ow flu ctu a tion s over tim e,
yet su pply is som etim es difficu lt to
m a n a ge, w ith lim ita tion s pla ced on ava ila bility of sta ff a n d pla ces in cou r ses.
5 T h e m eth od of ser vice d eliv er y. Deliver y of
ser vices m ay a lso be cla ssified in to th ose
r equ ir in g eith er sin gle or m u ltiple site
ou tlets, a n d th e n a tu r e of th e cu stom er
in ter a ction w ith th e ser vice. Cu stom er s
m ay eith er m ove to th e ser vice pr ovider, or
th e ser vice pr ovider ca n m ove to m eet
th em . In ter n a tion a l edu ca tion ser vices
tr a dition a lly in volve th e stu den t com in g to
th e in stitu tion to com plete th eir cou r ses.
However, th is is ch a n gin g, w ith th e esta blish m en t of offsh or e tea ch in g pr ogr a m s
a n d dista n ce edu ca tion (Sou ta r a n d
Ma zza r ol, 1995). Moder n tech n ologies h ave
a lso en a bled r em ote ser vice deliver y
(Ha m er, 1993).
In a com pr eh en sive exa m in a tion of th e ser vices m a r k etin g liter a tu r e, Zeith a m l et a l.
(1985) iden tified fou r pr im a r y ch a r a cter istics
of ser vices:
1 in ta n gibility;
2 in sepa r a bility of pr odu ction a n d con su m ption ;
3 h eter ogen eity; a n d
4 per ish a bility.
All of th ese ca n be fou n d in edu ca tion . E a ch
pr odu ces pr oblem s th a t m u st be over com e by
deliber a te m a r k etin g str a te gies.
In ta n gibility is a m a jor distin gu ish in g
fea tu r e of ser vices, bu t a pplies pa r ticu la r ly to
edu ca tion wh er e th e specific n a tu r e of th e
ser vice offer in g is difficu lt to defin e. On e of
th e effects of in ta n gibility is th a t ser vices
ca n n ot be stor ed (Sa sser, 1976; Ber r y, 1980).
For edu ca tion in stitu tion s th is ca n pose pr oblem s th r ou gh eith er over cr ow din g or a la ck of
ca pa city. In ta n gibility a lso cr ea tes difficu lties
for th e pr otection of ser vices th r ou gh pa ten ts
(J u dd, 1968). Th is is a m a jor pr oblem fa cin g
m a n y ser vices w ith in in ter n a tion a l m a r k ets,
pa r ticu la r in Asia (LE K, 1994, p. 98). In ta n gibility a lso m a k es it difficu lt to ea sily display
or com m u n ica te ser vices to th e cu stom er
(Ra th m ell, 1966). Th is h a s been a pr oblem for
th e pr om otion of Au str a lia n in ter n a tion a l
edu ca tion , wh ich h a s r eceived cr iticism in
th e pa st for su pplyin g in su fficien t deta il a n d
ta k in g a glossy “tou r isty” a ppr oa ch to pu blicity m a ter ia ls (AGB, 1992). F u r th er, th e settin g
of pr ices in m a n y ser vice in du str ies is m a de
m or e difficu lt by in ta n gibility (Dea r den , 1978;
Th om a s, 1978). Fee settin g w ith in in ter n a tion a l edu ca tion h a s been on e of th e m or e
con ten tiou s issu es (Ha r r is a n d J a r r ett, 1990).
Th e difficu lty in sepa r a tin g pr odu ction
fr om con su m ption in ser vices poses a ddition a l pr oblem s. On e of th e pr in cipa l ou tcom es of th is a spect of ser vices is th e n eed to
in volve th e cu stom er in th e pr odu ction of th e
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
ser vice (Boom s a n d N yqu ist, 1981). Th is is
pa r ticu la r ly th e ca se w ith edu ca tion , wh er e
stu den t pa r ticipa tion in th eir lea r n in g
pr ocess is a cr itica l fa ctor in deter m in in g
su ccess (Sh u ell a n d Lee, 1976, pp. 4-9).
An oth er a spect of th is sa m e pr oblem is th e
lik elih ood th a t m or e th a n on e con su m er w ill
be in volved togeth er in th e pr odu ction of th e
sa m e ser vice (Geor ge, 1977; Gr on r oos, 1978).
E du ca tion h a s lon g been u n der ta k en w ith in a
gr ou p a n d h a s been viewed a s a n im por ta n t
cu ltu r a l tr a n sm ission pr ocess (Sin gleton ,
1974). Most edu ca tion in stitu tion s a r e “socia lisin g or ga n isa tion s”, design ed to pr ocess
la r ge gr ou ps of people (Br im a n d Wh eeler,
1966, p. 57). Th is con cen tr a tion of stu den ts
in to m a ss lectu r es or la r ge cla sses w ith com m on “cor e cu r r icu la ” is a n en deavou r by
in stitu tion s to over com e a n oth er pr oblem
fa cin g ser vices – th e difficu lty of cen tr a lisin g
pr odu ction (Upa h , 1980). Un for tu n a tely, h igh
stu den t-tea ch er r a tios do little for th e developm en t of qu a lity lea r n in g ou tcom es du e to
th e in dividu a l differ en ces between peoples’
lea r n in g beh aviou r s (Ridin g, 1977, pp. 111-29).
Th e h eter ogen eity of ser vices poses sign ifica n t pr oblem s in th e a r ea of qu a lity con tr ol
a n d sta n da r disa tion (Ber r y, 1980; Boom s, a n d
Bitn er, 1981). Qu a lity m a n a gem en t w ith in
edu ca tion is a m a jor focu s of a tten tion for
cou n tr ies su ch a s Au str a lia , F r a n ce, th e UK
a n d USA (Ba ldw in , 1991; Ma r cea u , 1993;
Ha r m a n , 1994; Lin dsay, 1994; E dm on d, 1995).
F in a lly, th e per ish a bility of ser vices m ea n s
th a t th ey ca n n ot be pla ced in to in ven tor y a n d
th er eby cr ea tin g th e pr oblem of u n der or over
su pply (Sa sser, 1976).
Critical success strategies for
marketing international education
Th e specia l ch a r a cter istics of edu ca tion
descr ibed a bove cr ea te a ddition a l pr oblem s
for in stitu tion s a ttem ptin g to r ecr u it
offsh or e. E du ca tion in stitu tion s seek in g to
a ch ieve su ccess in in ter n a tion a l m a r k ets
m u st u n der ta k e a r a n ge of a ctivities design ed
to a ttr a ct pr ospective stu den ts fr om a r ou n d
th e wor ld. For m a n y stu den ts a n d th eir fa m ilies, th e decision to stu dy over sea s is on e of
th e m ost sign ifi ca n t a n d expen sive in itia tives
th ey w ill h ave ever u n der ta k en . F u r th er
pr oblem s m ay a r ise a s a r esu lt of differ en ces
between va r iou s ta r get m a r k ets, for exa m ple
In don esia is qu ite differ en t to J a pa n .
Per h a ps a s a r esu lt of th is th e m a r k etin g of
a n edu ca tion in stitu tion w ith in in ter n a tion a l
m a r k ets r equ ir es both sen sitivity a n d soph istica tion . Rela tively little h a s been w r itten on
th e m a r k etin g of edu ca tion w ith in in ter n a tion a l m a r k ets (Altba ch et a l., 1985; Altba ch
a n d Wa n g, 1989; Sm a r t a n d An g, 1992b). It is
th er efor e difficu lt to a pply a n y r ea dy-m a de
str a te gies or solu tion s to th e pr oblem s fa cin g
in stitu tion ’s in th eir m a r k etin g a ctivities.
An exa m in a tion of th e liter a tu r e r ela tin g to
ser vices m a r k etin g a n d com petitive a dva n ta ge, a s well a s discu ssion s w ith a pa n el of
exper ts loca ted w ith in th e in ter n a tion a l
offices of sever a l Au str a lia n u n iver sities,
iden tifi ed 17 fa ctor s cr itica l to th e su ccess of
edu ca tion in stitu tion s oper a tin g in in ter n a tion a l m a r k ets. Th ese “cr itica l su ccess fa ctor s” a r e exa m in ed in th e follow in g su bsection s.
Quality of reputation, and level of market
recognition/ profile
Th ese two fa ctor s h ave been h igh ligh ted in
sever a l stu dies a s bein g im por ta n t to th e
developm en t of com petitive a dva n ta ge (Aa ker,
1989; 1991; Ha ll, 1992; 1993). Th ey a r e n ot iden tica l to ea ch oth er a lth ou gh th ey a r e closely
r ela ted. In m a r k etin g edu ca tion th e su ccess of
Ivy Lea gu e in stitu tion s, for exa m ple, is lin ked
to th eir im a ge a n d r epu ta tion r ega r dless of
th eir tea ch in g qu a lity (Hu ber, 1992). Aa ker
(1989) fou n d th a t m a n a ger s of ser vice en ter pr ises r a n k ed a “r epu ta tion for qu a lity” a n d
“n a m e r ecogn ition / h igh pr ofile” a s sign ifica n t sou r ces of com petitive a dva n ta ge.
Possession of international strategic
alliances or coalitions
Th e im por ta n ce of possessin g in ter n a tion a l
str a tegic a llia n ces or coa lition s h a s fea tu r ed
in th e liter a tu r e a s a sou r ce of com petitive
a dva n ta ge. Por ter a n d F u ller (1986) n ote th e
im por ta n ce of coa lition s to in ter n a tion a l
m a r k etin g. Th e pr im a r y ben efits of coa lition s
bein g th e a bility to ga in : “econ om ies of sca le”;
“a ccess” (to distr ibu tion ch a n n els, ca pita l,
loca l k n ow ledge etc.); “r edu ction of r isk ”; a n d
th e a bility to sh a pe com petition . Coa lition
a ctivity ca n be a sou r ce of com petitive a dva n ta ge (Du n n in g a n d Pea r ce, 1985; Oh m a e, 1985).
Th e eviden ce of th is is su ggested by th e r ecen t
gr ow th in coa lition a ctivity a m on g edu cation
ser vices expor ter s (Scott, 1994). With in th e
in ter n a tion a l bu sin ess com m u n ity th e tr en d
h a s been tow a r d th e for m a tion of str a tegic
a llia n ces, a lth ou gh ca r e n eeds to be ta ken to
en su r e th a t th e n a tu r e of th e a llia n ce is
clea r ly u n der stood w ith per for m a n ce ben ch m a r k s esta blish ed (Pek a r a n d Allio, 1994).
Possession of offshore teaching programs,
and recruiting offices
Th e in sepa r a bility of pr odu ction a n d con su m ption in cr ea ses th e n eed for in ter n ation a l
ser vices expor ter s to in tegr a te for w a r d in to
th e over sea s m a r ketin g ch a n n el a n d esta blish
“for eign m a n u fa ctu r in g fa cilities” (Nicou la n d,
[ 165 ]
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
1989). Ser vices su ch a s edu ca tion involve a
h igh degr ee of “con su m er / pr odu cer in ter a ction ” cr ea tin g a str on g desir e for dir ect con tr ol
a n d pr esen ce by th e pr odu cer du r in g th e ea r ly
ph a ses of expor t developm en t (Va n er m er we
a n d Ch a dw ick , 1989). E r r a m illi (1991) su ppor ts
th is view. Ser vice expor ter s pr efer to r eta in a
h igh level of con tr ol over th eir expor t ch a n n el
u n til th eir exper ien ce w ith in th e m a r ket
in cr ea ses. Th e degr ee of for w a r d in tegr a tion
m ay be a fu r th er sou r ce of com petitive a dva n ta ge for ser vice en ter pr ises in in ter n ation a l
m a r kets.
Advice fr om th e exper t pa n el su ggested th a t
offsh or e tea ch in g pr ogr a m s a n d offsh or e
r ecr u itm en t offices m igh t a lso offer a sou r ce
of com petitive a dva n ta ge to in stitu tion s
en ga ged in in ter n a tion a l edu ca tion . Th is w a s
su ppor ted by r esea r ch su ggestin g th a t ser vice
en ter pr ises wer e m or e lik ely to in tegr a te
for w a r d in to th e expor t ch a n n el du e to th e
in sepa r a bility of pr odu ction a n d con su m ption
(E r r a m illi a n d Ra o, 1990). An em pir ica l stu dy
u sin g th e P IMS data ba se u n der ta k en by
Bh a r a dw a j a n d Men on (1993) fou n d th a t for w a r d in tegr a tion in cr ea sed th e m a r k et sh a r e
of ser vice en ter pr ises a n d h a d a sign ifica n t
positive effect on th eir fin a n cia l per for m a n ce.
Quality and expertise of staff
Th e a bility of in stitu tion s to r ecr u it a n d
r eta in qu a lity sta ff w a s exa m in ed a s a cr itica l
su ccess fa ctor. Bh a r a dw a j et a l. (1993) h igh ligh t th e im por ta n ce of or ga n isa tion a l lea r n in g a n d exper tise a s a sou r ce of com petitive
a dva n ta ge. In th e edu ca tion ser vices in du str y,
for exa m ple, stu den ts select cou r ses on th e
r epu ta tion of tea ch in g sta ff (Hu gh es, 1988).
Win ter (1987) su ggests th a t or ga n isa tion a l
lea r n in g is a sou r ce of com petitive a dva n ta ge
if two cr iter ia a r e m et: th e lea r n in g is “ta cit”
a n d n ot ea sily copied by com petitor s, a n d th e
k n ow ledge u n der lyin g th e exper tise is com plex (th u s m a k in g im ita tion difficu lt).
Organisational culture
Th e r ole of cu ltu r e in en h a n cin g or ga n isa tion a l per for m a n ce h a s been w idely
su ppor ted in th e liter a tu r e (Peter s a n d Wa ter m a n , 1982; Ba r n ey, 1986), in pa r ticu la r th e
n eed to develop a cu stom er or ien ted ser vice
cu ltu r e (Gr on r oos, 1990). Th is w a s exa m in ed
a s a poten tia l cr itica l su ccess fa ctor. Ma n a gin g cu ltu r e for su sta in a ble com petitive
a dva n ta ge r equ ir es ca r efu l a tten tion to be
pa id to th e la n gu a ge a n d beh aviou r u sed
w ith in th e en ter pr ise, a s well a s th e va lu es
a n d beliefs (F iol, 1991). Th e sym bols u sed to
defin e th e or ga n isa tion ’s str u ctu r e a n d
beh aviou r of its m em ber s ca n a lso play a
decisive r ole in defin in g th e n a tu r e of th e
cu ltu r e (Ba r ley, 1983).
[ 166 ]
Innovation
Th e de gr ee to wh ich a n en ter pr ise en cou r a ges in n ova tion h a s been viewed a s im por ta n t to developin g com petitive a dva n ta ge
(McIn tyr e, 1982; Qu in n , 1985, p. 79; Ta k eu ch i
a n d N on a k a , 1986; Va n Den Ven , 1986). Th e
im por ta n ce of or ga n isa tion a l cu ltu r e to su sta in a ble com petitive a dva n ta ge h a s been
ou tlin ed by Ba r n ey (1986) wh o n otes th a t
wh ile cu ltu r e n eeds to be fir m ly ba sed w ith in
th e or ga n isa tion , it sh ou ld a lso be flexible to
en cou r a ge in n ova tion . Gr on r oos (1990) r efer s
to th e n eed for ser vice en ter pr ises to develop
cu stom er or ien ted ser vice cu ltu r es in wh ich
th e or ga n isa tion ch a r t is in ver ted a n d cu stom er a n d fr on t-lin e sta ff becom e th e pr im a r y focu s. Th e a bility of cu ltu r e to pr ovide a
sou r ce of com petitive a dva n ta ge is a lso lin k ed
to its a bility to gen er a te str a te gica lly va lu a ble in n ova tion via th e pr ocess of or ga n isa tion a l lea r n in g (Willia m s, 1992). A en ter pr ise
n eeds to develop str on g cor e va lu es th a t
em ph a size in n ova tion a n d flexibility in or der
develop su sta in ed su per ior fin a n cia l per for m a n ce (Ba r n ey, 1986).
Effective use of information technology
and technical superiority
Por ter a n d Milla r (1985) h ave em ph a sised th e
im por ta n ce of in for m a tion tech n ology to th e
a ch ievem en t of com petitive a dva n ta ge. Th e
effective u se of in for m a tion tech n ology w a s
con sider ed a s a poten tia l sou r ce of com petitive a dva n ta ge. Also exa m in ed w a s th e level
of tech n ica l su per ior ity w ith in th e in stitu tion . Sin ce th e em er gen ce of m oder n in for m a tion tech n ology th e va lu e of com pu ter s to th e
developm en t of com petitive a dva n ta ge h a s
been h igh ligh ted (Ger stein a n d Reism a n ,
1982). In for m a tion tech n ology h a s been
viewed a s offer in g en ter pr ises th e a bility to
a dopt “gen er ic” position in g str a te gies. Com pu ter a ided design (CAD) or com pu ter a ided
m a n u fa ctu r in g (CAM) ca n a ssist in a ch ievin g
cost lea der sh ip, wh ile differ en tia tion ca n be
a ssisted by selected in for m a tion tech n ologies
(P a r son s, 1983).
Financial resources
Th e im por ta n ce of fin a n cia l per for m a n ce a s a
sou r ce of com petitiven ess h a s been h igh ligh ted
in th e liter atu r e (Bu zzell a n d Ga le, 1987).
Ability to offer a broad range of courses/
programs
Th e possession of econ om ies of scope h a s
been su ggested a s a poten tia l sou r ce of com petitive a dva n ta ge in in ter n a tion a l m a r k etin g (Ta k eu ch i a n d Por ter, 1986). Discu ssion s
w ith th e exper t pa n el su ggested th a t a n in stitu tion ’s a bility to offer a br oa d r a n ge of
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
cou r ses a n d pr ogr a m s w a s a poten tia l sou r ce
of com petitive a dva n ta ge.
Scale effects (strength of alumni and
market share)
Sca le econ om ies h ave been viewed a s a
sou r ce of com petitive a dva n ta ge (Bh a r a dw a j
et a l., 1993). With in th e qu estion n a ir e th e
possession of a str on g a lu m n i ba se, size of
stu den t popu la tion , size of ca m pu s a n d possession of a la r ge m a r k et sh a r e m ea su r ed
th is.
Advertising and promotion
Wh a tever th e m er its of a dver tisin g it h a s n ot
been w idely u sed w ith in edu ca tion m a r k etin g. A su r vey of in ter n a tion a l stu den ts in
Au str a lia fou n d th a t on ly som e 3 to 8 per cen t
of r espon den ts (depen din g u pon type of in stitu tion a tten ded e.g. u n iver sity, secon da r y,
E LICOS) cla im ed m a ss m edia a dver tisin g to
be th eir m a in sou r ce of in for m a tion pr ior to
selectin g th eir in stitu tion (Ha r r is a n d Rh a ll,
1993, p. 46). Per h a ps its m ost sign ifica n t wea k n ess is th e per ception th a t a ppea r s to exist
a m on g m a n y pr ospective in ter n a tion a l stu den ts th a t in stitu tion s wh ich a dver tise ca n n ot be of h igh qu a lity (AGB, 1992).
Resea r ch in to th e a dver tisin g of ser vices
em ph a sizes th a t it r equ ir es a differ en t
a ppr oa ch to m or e con ven tion a l pr odu cts
(Ba teson , 1979; Zeith a m l et a l., 1985; Le gg a n d
Ba k er, 1991). It h a s been su ggested th a t edu ca tion in stitu tion s seek in g to m a k e u se of
a dver tisin g n eed to em ph a size th eir positive
qu a lities via u se of testim on ia ls (Da n ko,
1986). Adver tisem en ts th a t sh ow th e pr ospective con su m er h ow th e ser vice w ill be deliver ed to th em a r e lik ely to en h a n ce th e differ en tia tion of th e ser vice offer in g a n d m ay a lso
a ssist th e con su m er ’s u n der sta n din g a n d
eva lu a tion of th e ser vice (Day, 1992).
Use of private recruitment agents
Th e u se of r ecr u itm en t a gen ts to pr om ote
in ter n a tion a l edu ca tion h a s been on e of th e
m or e con tr over sia l issu es w ith in Au str a lia .
Som e com m en ta tor s h ave cr iticized a gen ts
for givin g fa lse in for m a tion a n d en ga gin g in
u n eth ica l pr a ctices (Davis, 1989). Oth er s h ave
in dica ted su ppor t for a gen ts a s a va lu a ble
for m of pr om otion (E dw a r ds a n d Br ow n e,
1991; Sm a r t a n d An g, 1992b; Ha r r is a n d Rh a ll,
1993). Su r veys of in ter n a tion a l stu den ts in
Au str a lia su ppor t th e view th a t a gen ts a r e a n
im por ta n t sou r ce of in for m a tion . On e stu dy
fou n d 29 per cen t of stu den ts su r veyed h a d
con su lted a n a gen t, a n d 20 per cen t h a d r elied
h eavily u pon th eir a dvice (Ha r r is a n d Rh a ll,
1993, p. 62). An oth er stu dy fou n d th a t n ea r ly
h a lf th e stu den ts su r veyed h a d u sed a gen ts
(DCT, 1993, p. 49).
Use of government promotion agencies
Th e effectiven ess of gover n m en t in for m a tion
cen tr es is difficu lt to ga u ge. A su r vey of in ter n a tion a l stu den ts in Au str a lia fou n d th a t 55
per cen t h a d n eith er u sed n or h ea r d of th e
Au str a lia n E du ca tion Cen tr es (AE Cs)
(loca ted in ten Asia -P a cific ca pita ls) (Ha r r is
a n d Rh a ll, 1993, p. 52). An oth er stu dy fou n d
AE Cs r ecr u ited on ly 7 per cen t of stu den ts
sa m pled com pa r ed to 33 per cen t fr om a gen ts
(Sm a r t a n d An g, 1993, p. 28). Th ese fin din gs
wer e su ppor ted by a n oth er sim ila r su r vey
u n der ta k en by th e Wester n Au str a lia Gover n m en t wh o fou n d th eir ow n WA E du ca tion
Offices (WAE Os) m or e effective in a ttr a ctin g
stu den ts to th a t sta te (DCT, 1993, p. 49). N ever th eless, a con sider a ble in vestm en t is bein g
m a de by cou n tr ies su ch a s Au str a lia , Ca n a da ,
th e UK a n d th e USA in esta blish in g a n d m a in ta in in g edu ca tion in for m a tion a n d pr om otion cen tr es in selected ta r get m a r k et cou n tr ies. Most a r e pr ofession a lly r u n , well
r esou r ced a n d distr ibu te in for m a tion to a
su bsta n tia l n u m ber of pr ospective stu den ts
ea ch yea r (DE E T, 1993).
A Survey of institutions
Du r in g 1994 a su r vey wa s m a iled to 1,255 edu cation in stitu tion s in Au str a lia , Ca n a da , New
Zea la n d, th e UK a n d USA. A fin a l u sable sa m ple of 315 wa s pr odu ced. Th e m a jor ity of th e
in stitu tion s (82 per cen t) wer e Au str a lia n , a n d
th e la r gest gr ou p wa s pr ivate secon da r y
sch ools. Oth er in stitu tion s com pr ised u n iver sities; TAFE colleges, polytech n ics; pr ivately
own ed bu sin ess colleges; En glish la n gu a ge
In ten sive Cou r ses for Over sea s Stu den ts (ELICOS) cen tr es; a ir tr a in in g sch ools; gover n m en t
sch ools or in stitu tion s; th eologica l colleges a n d
oth er in stitu tion s n ot cla ssified elsewh er e. Th e
sa m ple a lso com pr ised 46 per cen t of a ll Au str a lia n u n iver sities, a n d 81 per cen t of TAFE
college system s, 24 per cen t of Au str a lia n pr ivate bu sin ess colleges a n d 33 per cen t of a ll
ELICOS cen tr es listed in th e Com m on wea lth
r egister of In stitu tion s a n d Cou r ses for Over sea s Stu den ts (CRICOS) in 1994. Th is r egister
lists a ll Au str a lia n edu cation a l in stitu tion s
en ga ged in th e r ecr u itm en t of fu ll-fee payin g
over sea s stu den ts (FFPOS). Of th e n on -Au str a lia n in stitu tion s su r veyed, 47 per cen t h a d
en r olm en ts of over 10,000 stu den ts. Th e m a jor ity of th ese in stitu tion s wer e u n iver sities.
Th e su r vey w a s ta r geted a t th e in ter n a tion a l offices a n d m a r k etin g or r ecr u itm en t
m a n a ger s. J u st over h a lf (52 per cen t) of
r espon den ts listed th eir fu n ction a s a dm in istr a tion , a n d 34 per cen t a s m a r k etin g. Th e
m a jor ity (75 per cen t) h a d been in volved w ith
edu ca tion for over ten yea r s a n d th e aver a ge
[ 167 ]
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
len gth of tim e in th eir position s w a s six
yea r s. Seven ty-five per cen t of r espon den ts
sa id th ey wer e fr equ en tly in volved in pla n n in g decision s r ela tin g to in ter n a tion a l
m a r k etin g for th eir or ga n isa tion s. Th is su ggests th a t th e sa m ple r epr esen t a n exper ien ced a n d r ela tively exper t gr ou p.
Institutional rating of the critical
success factors
In stitu tion s wer e a sk ed to r a te th eir ow n
in stitu tion ’s per for m a n ce in ter m s of its
in ter n a tion a l m a r k etin g on ea ch of th e 17
“cr itica l su ccess fa ctor s”. Th e r a tin g for ea ch
item w a s pla ced on a seven -poin t sca le wh er e
1 = extr em ely poor per for m a n ce a n d
7 = extr em ely h igh per for m a n ce. Ta ble I
sh ow s th e r esu lts of th e in stitu tion s’
r espon ses to th ese qu estion s.
It ca n be seen in Ta ble I th a t th e m a jor ity of
r espon den ts con sider ed th eir in stitu tion ’s
per for m a n ce w a s best in th e a r ea s of th e
en cou r a gem en t of in n ova tion a n d th e qu a lity
a n d exper ien ce of sta ff. Th ese two item s wer e
r a ted sign ifica n tly h igh er th a n th e oth er 15 by
th e in stitu tion s a n d h a d m ea n r a tin g scor es
of 5.67 a n d 5.64 r espectively.
Factor analysis of the critical
success factors
A fa ctor a n a lysis w a s u n der ta k en of th e 17
“cr itica l su ccess” item s. In k eepin g w ith th e
Table I
Critic al suc c e ss fac to rs – pe rfo rmanc e rating by institutio ns
Success factor
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Performance rating
total sample means
Enc ourages innovation
Is highly suc c essful at rec ruiting and retaining quality, experienc ed
staff
Has a high-quality image
Has a strong c ustomer-oriented c ulture
Makes effec tive use of information tec hnology
Has strong financ ial resourc es
Is tec hnic ally superior to most in its field
Offers a broad range of c ourses and programs
Is well known
Has a very strong and ac tive Alumni
Has many international strategic allianc es and c oalitions
Has a very large overseas student population
Relies heavily on private rec ruitment agents
Relies heavily on government overseas promotion c entres
Has a large overseas advertising and promotion budget
Has many offshore rec ruitment offic es
Has many offshore teac hing programs
Note: 1 = low performanc e; 7 = high performanc e
[ 168 ]
5.67
5.64
5.32
5.23
5.20
5.19
5.15
4.95
3.87
3.52
3.06
2.93
2.83
2.68
2.59
2.22
1.72
pr in cipa l com pon en ts m eth od, eigen va lu es
gr ea ter th a n on e wer e selected to deter m in e
th e a ppr opr ia te n u m ber of fa ctor s. A va r im a x
r ota tion w a s a pplied to pr ovide ea se of da ta
in ter pr eta tion . Th e m ea su r e of sa m plin g
a dequ a cy for th e 17 item s w a s 0.83 in dica tin g
th a t th e item s wer e su ita ble for fa ctor in g
(Ka iser, 1974; Stew a r t, 1981). Ta ble II sh ow s
th e r esu lts of th is a n a lysis.
Th e fa ctor a n a lysis of th e 17 item s fou n d
fou r fa ctor s w ith eigen va lu es gr ea ter th a n
on e, wh ich a ccou n ted for 61 per cen t of va r ia n ce. All 17-fa ctor loa din gs yielded clea r
r esu lts w ith sta tistics r a n gin g fr om
0.54 to 0.84. F ive item s r ela tin g to in stitu tion a l “P r om otion a n d r ecr u itm en t” loa ded
on to th e fi r st fa ctor, wh ich w a s a ccor din gly
titled. A fu r th er five item s, r ela tin g to in stitu tion a l r epu ta tion , m a r k et pr ofile a n d str en gth
of fin a n ces a n d a lu m n i loa ded on to th e secon d fa ctor wh ich w a s la belled “Im a ge a n d
r esou r ces”. F ive item s r ela tin g to in ter n a l
cu ltu r e, sta ffin g a n d u se of tech n ology
gr ou ped in to a th ir d fa ctor, wh ich w a s
la belled “People a n d cu ltu r e”. Th e la st two
item s, r ela tin g to possession of in ter n a tion a l
str a te gic a llia n ces a n d offsh or e tea ch in g
pr ogr a m s, loa ded on th e fou r th fa ctor,
“Coa lition a n d for w a r d in te gr a tion ”.
Measures of market success
Mea su r in g su ccess w ith in th e in ter n a tion a l
edu ca tion sector is com plica ted by a va r iety
of in flu en ces. Recr u itm en t su ccess in ter m s
of tota l en r olm en ts is a n u n su ita ble m ea su r e
du e to th e differ en ces th a t exist between
va r iou s types of in stitu tion s. For exa m ple, a
u n iver sity w ith tota l stu den t en r olm en ts in
excess of 15,000 m igh t con sider th em selves
u n su ccessfu l if th ey fa iled to r ecr u it less th a n
100 in ter n a tion a l stu den ts. However, a pr iva te
secon da r y sch ool w ith in ter n a tion a l stu den t
en r olm en ts of on ly 75 m ay view itself a s su ccessfu l, pa r ticu la r ly if th is is th eir a n n u a l
qu ota set by gover n m en t policy a n d th ey
con sisten tly fill it w ith ou t difficu lty.
In or der t o a ccom m oda t e t h ese pr oblem s a
ser ies of fi ve qu est ion s w er e a sk ed wh ich
wer e design ed t o m ea su r e t h e r ela t ive su ccess of t h e in st it u t ion in r ecr u it in g in t er n a t ion a l st u den t s. Respon den t s w er e a sk ed t o
r a t e t h eir a gr eem en t w it h fi ve st a t em en t s
defi n in g t h e fi ve su ccess m ea su r es. T h e
r espon ses w er e r ecor ded on seven poin t
sca les wh er e 1 = st r on gly disa gr ee a n d
7 = st r on gly a gr ee. Ta ble III sh ow s t h e n a t u r e
of t h ese qu est ion s. It ca n be seen fr om t h e
t a ble t h a t t h e over a ll sa m ple did n ot r a t e
t h eir su ccess pa r t icu la r ly h igh w it h a ll m ea n
scor es below 5. An exa m in a t ion of t h e r a t in g
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
m ea n s for differ en t in st it u t ion a l t ypes t o t h e
fi ve it em s w a s u n der t a k en u sin g a n a n a lysis
of va r ia n ce (AN OVA) t est . T h is fou n d n o
differ en ces bet w een a n y of t h e t er t ia r y in st it u t ion s w it h t h e exce pt ion of t h e E LICOS
colle ges wh o wer e m or e lik ely t o a gr ee w it h
t h e st a t em en t t h a t w it h ou t over sea s st u den t
fees t h ey wou ld exper ien ce fi n a n cia l difficu lt ies. T h is is n ot su r pr isin g given t h a t su ch
in st it u t ion s a r e wh olly de pen den t u pon
in t er n a t ion a l st u den t s for t h eir su r viva l.
T h ese fin d in gs su ggest t h a t su ccess is
v iew ed in a sim ila r m a n n er by in st it u t ion s
r e ga r d les s of t h eir cou n t r y of or igin . Secon d a r y sch ools wer e fou n d t o b e d iffer en t t o
t h eir t er t ia r y cou n t er p a r t s w h ich m ay b e
exp la in ed by t h e sch ools n ot h av in g exp er ien ced t h e s a m e level of gr ow t h in in t er n a t ion a l st u d en t en r olm en t s a s h ave t h e
Table II
Fac to rs analysis o f institutio nal pe rfo rmanc e o n c ritic al suc c e ss fac to rs
Factor
loadings
M ean
scores
Use of private rec ruitment agents
0.84
2.83
Size of overseas advertising and promotion
budget
Possession of offshore rec ruitment offic es
Use of government information offic es overseas
Size of international student enrolments
0.77
0.72
0.71
0.54
2.59
2.22
2.68
2.93
Image and resources Level of market profile or rec ognition
(alpha = 0.74)
Strength of financ ial resourc es
Reputation for quality
Size and influenc e of alumni
Range of c ourses and programs
0.76
0.64
0.63
0.60
0.55
3.87
5.19
5.32
3.52
4.95
People and culture
(alpha = 0.77)
0.80
0.77
0.68
0.66
0.57
5.67
5.23
5.20
5.64
5.15
0.78
3.06
0.78
1.72
Factor label
Item
Promotion and
recruitment
(alpha = 0.82)
Level of innovation within the institutions’ c ulture
Level of c ustomer orientation within c ulture
Effec tive use of information tec hnology
Quality and expertise of staff
Level of tec hnic al superiority
Coalition and forward Possession of international strategic allianc es
integration
(alpha = 0.61)
Possession of offshore teac hing programs
The outlook over the next 3-6 years is for continued growth in overseas
student numbers
Growth in overseas student body has regularly been high
The financial benefits to the institution have regularly exceeded forecasts
or expectations
Demand for places from overseas students regularly exceeds supply
Without overseas student fees the institution would experience financial
difficulties
Note: 1 = strongly disagree; 7 = strongly agree
A factor analysis of the success
measures
T h e m ea su r e of sa m p lin g a d eq u a cy for t h e
five it em s m ea su r in g m a r k et su cces s w a s
0.75, su ggest in g su it a b ilit y for fa ct or a n a ly sis (Ka iser, 1974). T h e a n a ly sis of t h e five
it em s m ea su r in g m a r k et su ccess fou n d t wo
fa ct or s w it h eigen va lu es gr ea t er t h a n 1
w h ich a ccou n t ed for 70 p er cen t of va r ia n ce.
T h e r ot a t ed fa ct or loa d in gs y ield ed clea r
r esu lt s, w it h fou r of t h e five it em s gr ou p in g
in t o t h e fir st fa ct or, w h ich w a s la b elled
“Ma r k et su ccess”. T h e r em a in in g it em –
“w it h ou t over sea s st u d en t fees t h e in s t it u t ion wou ld exp er ien ce fin a n cia l d ifficu lt ies ”
– loa d ed on t o a secon d fa ct or w h ich w a s
r et a in ed a s a n in d e p en d en t va r ia ble. Ta ble
IV sh ow s t h e r esu lt s of t h is fa ct or a n a ly s is.
A t est of t h e r elia b ilit y of t h e fa ct or w a s
u n d er t a k en (Cr on b a ch , 1951). T h e r elia b ilit y
coefficien t for t h e fa ct or w a s 0.76 su gges t in g
t h a t t h e fa ct or con st r u ct w a s r elia b ly in d ica t ed by t h e fou r va r ia bles.
N o sign ifica n t differ en ce w a s fou n d
between th e Au str a lia n a n d over sea s ter tia r y
in stitu tion s in th eir m ea n r a tin g scor es for
th e fa ctor m a r k et su ccess su ggestin g th a t
cou n tr y differ en ces cou ld be ign or ed in fu r th er a n a lysis. A sign ifica n t differ en ce w a s
fou n d between th e sch ools a n d th e u n iver sities in th eir r a tin g of th e fa ctor, a lth ou gh th is
is n ot su r pr isin g given th e m a jor fl ow of feepayin g in ter n a tion a l stu den ts is in to th e
h igh er edu ca tion sector.
Estimation of the logistic
regression model
Table III
Re spo nde nt rating o f institutio nal suc c e ss rating o f que stio ns
Question
t er t ia r y in st it u t ion s. F u r t h er, t h e secon d a r y
sch ools a p p ea r m u ch less d e p en d en t u p on
in t er n a t ion a l st u d en t fees t h a n t h e t er t ia r y
in st it u t ion s for t h eir fin a n cia l secu r it y. Few
of t h ese fin d in gs a r e su r p r isin g a n d r eflect
t h e con cen t r a t ion of in t er n a t ion a l s t u d en t
n u m b er s w it h in t h e t er t ia r y sect or of t h e
in d u st r y.
M ean rating
4.33
3.68
3.22
2.85
2.58
Logistic r egr ession or logit a n a lysis is su ita ble wh er e a bin a r y or dich otom ou s depen den t va r ia ble exists. Th is pr ocedu r e estim a tes
th e coefficien ts of a pr oba blistic m odel,
involvin g a set of in depen den t va r ia bles th a t
best pr edict th e va lu e of th e depen den t va r ia ble. A positive coefficien t in cr ea ses th e pr oba bility, wh ile a n ega tive va lu e decr ea ses th e
pr edicted pr oba bility of th e ou tcom e bein g in
eith er of th e two depen den t va r ia ble ca tegor ies (Ha ir et a l., 1992, pp. 130-1). In pr edictin g th e pr oba bility of m u ltiple in depen den t
[ 169 ]
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
va r ia bles on a sin gle dich otom ou s depen den t
va r ia ble th e m odel u sed is:
1
P ( y = 1) =
1 + e–z
wh er e: z = β0 + β1x 1 + β2x 2 + … + βn x n
xn
= a set of in depen den t va r ia bles
= a n in ter cept ter m
β0
bn
= a set of pa r a m eter s for th e
in depen den t va r ia bles
e
= th e qu a n tity 2.71828+ , th e ba se of
n a tu r a l loga r ith m s
y
= th e dich otom ou s depen den t
va r ia ble, m a r k et su ccess
P(y = 1) = th e pr oba bility of a fir m bein g
cla ssified a s h igh or low su ccess.
Th e fa ctor m a r k et su ccess w a s con ver ted
in to a dich otom ou s va r ia ble com pr isin g
th ose in stitu tion s w ith low su ccess a n d th ose
w ith h igh su ccess. Th e m ea n r a tin g scor e for
th e en tir e sa m ple w a s 3.5 w ith a n or m a l
distr ibu tion . A cu t poin t of 4 w a s selected to
pr ovide two distin ct gr ou ps: th ose in stitu tion s w ith h igh m a r k et su ccess (m ea n = 5.21);
a n d th ose in stitu tion s w ith low m a r k et
su ccess (m ea n = 2.71).
Of th e 315 in stitu tion s 188 (65 per cen t) wer e
cla ssified a s low m a r k et su ccess, wh ile 103
(35 per cen t) wer e cla ssified a s h igh m a r k et
su ccess. An exa m in a tion of th e r ela tion sh ip
between cou n tr y of or igin a n d in stitu tion a l
type a n d m em ber sh ip of eith er of th ese two
ca te gor ies fou n d n o sign ifica n t a ssocia tion .
A logit a n a lysis w a s u n der ta k en u sin g th is
dich otom ou s su ccess m ea su r e a s th e depen den t va r ia ble a n d th e fou r cr itica l su ccess
fa ctor s: pr om otion a n d r ecr u itm en t, im a ge
a n d r esou r ces; people a n d cu ltu r e; a n d coa lition a n d for w a r d in te gr a tion a s th e in depen den t va r ia bles. A tota l of 286 of th e 315 ca ses
wer e u sed to estim a te th e m odel. Twen ty-n in e
ca ses wer e n ot in clu ded beca u se th ey wer e
m issin g da ta for on e or m or e of th e va r ia bles.
Th e fin a l m odel, wh ich con ta in ed two sign ifica n t ter m s, is sh ow n in Ta ble V. Both va r ia bles wer e sign ifica n t a t th e 0.05 level.
Th e fir st sign ifi ca n t va r ia ble in th e m odel
w a s th e fa ctor va r ia ble “Im a ge a n d
Table IV
Re sults o f fac to r analysis o f marke t suc c e ss me asure s
Factor label
M arket Success
(alpha = 0.76)
Item
Growth in overseas student enrolments
Financ ial benefits from international students
Demand for plac es regularly exc eeds supply
The outlook for the next 3 to 6 years is for
growth
Independent variable Without overseas student fees the institution
would experienc e financ ial diffic ulties
[ 170 ]
Factor
loadings
M ean
scores
0.85
0.79
0.74
3.68
3.22
2.85
0.64
4.33
0.89
2.58
r esou r ces” wh ich m ea su r ed th e level of m a r k et pr ofi le or r ecogn ition , th e str en gth of
fin a n cia l r esou r ces, r epu ta tion for qu a lity,
size a n d in flu en ce of a lu m n i a n d r a n ge of
cou r ses a n d pr ogr a m s. Th e positive coefficien t for th is ter m in dica ted th a t in stitu tion s
wh ich wer e iden tified a s h igh m a r k et su ccess
wer e m or e lik ely to be per for m in g better in
th e a r ea s a ssocia ted w ith th is fa ctor th a n
th ose in stitu tion s cla ssified a s low m a r k et
su ccess.
Th e secon d sign ifica n t ter m selected for
in clu sion in th e m odel w a s th e fa ctor va r ia ble
“Coa lition a n d for w a r d in te gr a tion ” wh ich
m ea su r ed th e possession of in ter n a tion a l
str a te gic a llia n ces a n d possession of offsh or e
tea ch in g pr ogr a m s. Th e positive sign for th is
ter m ’s coefficien t in dica ted th a t th ose in stitu tion s, wh ich possessed th ese a ttr ibu tes, wer e
m or e lik ely to be cla ssified a s h igh m a r k et
su ccess.
Goodness of fit of the model
On e m eth od of a ssessin g th e goodn ess of fit of
logistic m odels is to exa m in e th e –2LL m ea su r e. Th is m ea su r e is ca lcu la ted by th e SP SS
Logistic Re gr ession pr ocedu r e ea ch tim e a
m odel is developed. If a m odel fits per fectly,
th en th e va lu e for –2LL w ill be 0. Th e –2LL is
a lso ca lcu la ted for th e m odel th a t con ta in s
th e con sta n t on ly. Th is en a bles a n estim a tion
of th e level of im pr ovem en t ga in ed by a ddin g
th e m odel ter m s (N or u sis, 1993, p. 10). Th ese
two va lu es for –2LL a r e sh ow n in Ta ble VI.
–2LL for th e m odel w ith th e con sta n t w a s
fou n d to be 372.64, wh ile th a t for th e fu ll
m odel w a s 322.18.
Seein g h ow well th e m odel cla ssifies th e
da ta is a n oth er w ay of deter m in in g h ow well
a logistic m odel per for m s. Th is in volves a
com pa r ison of th e obser ved n u m ber of ca ses
for ea ch sta te of th e depen den t va r ia ble w ith
th e pr edicted n u m ber of ea ch sta te a s der ived
fr om th e m odel (Wr igley, 1985, p. 50). Ta ble VI
illu str a tes th e cla ssifica tion per for m a n ce of
th e m odel.
Th e pr ior pr oba bilities in dica te th e pr obability of a ca se bein g cor r ectly cla ssified in to on e
of th e two gr ou ps befor e th e m odel is a pplied to
th e da ta (Afifi a n d Cla r k , 1984, pp. 263-4). Th e
r elative sizes of th e two popu la tion s in th e
cu r r en t m odel deter m in ed th e va lu e of 64.34
per cen t for th e pr ior pr oba bilities. Th e poster ior pr obabilities expr ess th e pr oba bility for
ea ch ca se of belon gin g to a pa r ticu la r gr ou p a s
deter m in ed by th e ch osen m odel (Afifi a n d
Cla r k , 1984, p. 262). Th e r esu lts of a pplyin g th e
m odel to th e da ta a r e sh ow n in th e bottom h a lf
of Ta ble VI. Th is sh ow s th a t th e m odel cor r ectly cla ssified 72.73 per cen t of th e 286 ca ses.
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
Discussions with institutions over
the critical success factors
In or der to ga in a better u n der sta n din g of th e
n a tu r e of th ese su ccess fa ctor s a ser ies of
in -depth in ter view s wer e con du cted w ith
r epr esen ta tives fr om a selected sa m ple of 14
Au str a lia n in stitu tion s in Au str a lia .
Selection of th e 14 in stitu tion s w a s on th e
ba sis of size, in stitu tion type a n d r ela tive
exper ien ce w ith in th e in ter n a tion a l m a r k et.
Th e in stitu tion s in ter viewed in clu ded
u n iver sities; pr iva te bu sin ess or voca tion a l
colle ges, E LICOS colle ges, TAF E colle ges,
pr iva te secon da r y sch ools a n d a pilot tr a in in g
sch ool.
Du r in g th e in ter view s th e cr itica l su ccess
fa ctor s iden tifi ed in th e su r vey wer e
marketing
Tim M azzarol
Curtin Busine ss Sc ho o l, Curtin Unive rsity o f Te c hno lo gy, Pe rth, Australia
This paper draws on the
fi ndings of a survey of 315
education institutions from
Australia, Canada, New
Zealand, the UK and the USA.
Respondents were asked to
rate their institutions’ overall
performance on a series of 17
items that an examination of
the literature and previous indepth interviews identifi ed as
being critical to the success
of education institutions
seeking to market themselves
internationally. A factor
analysis of these items identifi ed four underlying dimensions. Promotion and Recruitment, Image and Resources,
People and Culture and Coalition and Forward Integration.
The relative success of these
institutions was then measured using a scale consisting
of four indicators relating to:
growth in enrolments,
demand, short to mediumterm outlook and fi nancial
benefi ts. A logistic regression
model was then constructed
to identify which of these
success factors were possible
determinants of institutional
success. Two factors, Image
and Resources, and Coalition
and Forward Integration were
found to be signifi cant predictors of market success.
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [ 1998] 1 6 3 –1 7 5
© MCB Unive rsity Pre ss
[ ISSN 0951-354X]
The economic importance of
international education
Th e deca des of th e 1970s a n d 1980s w itn essed
a r a pid expa n sion of th e ser vices sector
w ith in m ost in du str ia lised cou n tr ies (Blois,
1974; P lu n k er t, 1990). For exa m ple, in th e
per iod 1969-70 th e ser vices sector of th e Au str a lia n econ om y con tr ibu ted 54 per cen t of
gr oss in du str y pr odu ct. Th is h a d gr ow n to 63
per cen t by 1984-86 (Cla r k , 1988, p. 61). In 1992
th e ser vices sector con tr ibu ted over 66 per
cen t of GDP a n d a ccou n ted for a bou t 78 per
cen t of a ll em ploym en t (ACIIC, 1993). Th is is a
situ a tion com m on to th e US, J a pa n , Ca n a da ,
th e UK a n d Ger m a n y, wh er e between 60 a n d
70 per cen t of a ll em ploym en t is a bsor bed by
th e ser vices sector (Du n n in g a n d Ku n du ,
1995).
On e of th e m or e sign ifica n t ser vice in du str ies th a t em er ged in th e 1980s a n d 1990s is
in ter n a tion a l edu ca tion . Th e con tr ibu tion of
in ter n a tion a l edu ca tion to th e Au str a lia n
econ om y ca n be ga u ged by a n a ssessm en t
u n der ta k en by th e Depa r tm en t of E m ploym en t, E du ca tion a n d Tr a in in g (DE E T, 1993).
Th is estim a ted th e in ter n a tion a l edu ca tion of
fu ll-fee payin g over sea s stu den ts (F F P OS) h a d
gen er a ted $1.4 billion in tu ition fees a n d livin g expen ses, wh ich pla ced it close to wh ea t
($1.5 billion ) a s a n expor t ea r n er (Str ick la n d,
1995, p. 46). By 1995 th e officia l va lu e of expor t
in com e fr om over sea s stu den ts to Au str a lia
w a s $1.9 billion . In th e sa m e yea r in ter n a tion a l edu ca tion a ccou n ted for 9 per cen t of
Au str a lia ’s tota l ser vice expor ts com pa r ed
w ith less th a n 3 per cen t in 1985 (Ma zza r ol et
a l., 1996).
Accor din g to th e Wester n Au str a lia n
Depa r tm en t of Com m er ce a n d Tr a de, in 1992
in ter n a tion a l edu ca tion in th e sta te in volved
275 in stitu tion s, pr ovided em ploym en t for
3,786 people a n d gen er a ted a r ou n d $100
m illion in r even u es (DCT, 1993, p. 22; Rowe,
1995, p. 412). F u r th er, th e in ter n a tion a l edu ca tion in du str y in Wester n Au str a lia h a d exper ien ced em ploym en t gr ow th over a fi ve-yea r
per iod of 27 per cen t, a n d w a s com pa r a ble to
m in in g, a gr icu ltu r e a n d for estr y a s a n in du str y su ccessfu l in gen er a tin g expor t in com e
(Rowe, 1995, p. 415).
Th is is a pa tter n th a t h a s been exper ien ced
in oth er cou n tr ies. For exa m ple, a ccor din g to
th e Gover n m en t of Ca n a da in 1991 in ter n a tion a l stu den ts con tr ibu ted a n estim a ted
C$1.5 billion to th e Ca n a dia n econ om y a n d
gen er a ted a ppr oxim a tely 19,000 jobs for
Ca n a dia n s (MSS, 1993). Th e USA, wh ich is
h ost to th e m a jor ity of th e wor ld’s in ter n a tion a l stu den ts, h a s estim a ted th a t its u n iver sities a n d colle ges gen er a ted a tr a de su r plu s
of $6 billion in 1993 com pr isin g a bou t 10 per
cen t of th e tota l US ser vices tr a de su r plu s
(E va n s, 1995). In a ddition to th e r even u es
gen er a ted dir ectly fr om tu ition fees, a fu r th er
$3.6 billion is in jected in to th e USA econ om y
fr om in ter n a tion a l stu den t spen din g on
a ccom m oda tion , food a n d oth er item s (Scott,
1995).
The nature of education as a
marketable service
Despite th e im por ta n ce of ser vices to
n a tion a l econ om ies th ey h ave ten ded to be
ign or ed or over look ed, du e la r gely to th eir
in ta n gible n a tu r e (LE K, 1994, p. 18). P r ior to
th e 1960s a n d 1970s ser vices m a r k etin g w a s
n ot distin gu ish ed a s a sepa r a te field of in vestiga tion (Ber r y a n d P a r a su r a m a n , 1993; F isk
et a l., 1993). On e r ea son given for th is is th e
difficu lty a ssocia ted w ith th e cla ssifica tion of
ser vices. As n oted by Lovelock (1991, p. 25):
“Ba sica lly th e r a n ge of ser vices is too br oa d
to a llow m ea n in gfu l, in -depth a n a lysis of th e
en tir e fi eld”.
F isk et a l. (1993) h ave tr a ced th e developm en t of ser vices m a r k etin g r esea r ch . Th e
tr a dition a l tr ea tm en t of ser vices in bu sin ess
a n d econ om ic liter a tu r e w a s to ign or e th em
a s in ta n gibles u sefu l on ly in su ppor tin g th e
m a r k etin g of goods. However, a s th e im por ta n ce of ser vices w ith in m ost n a tion a l
econ om ies gr ew du r in g th e deca des follow in g
th e Secon d Wor ld Wa r, th e level of in ter est in
ser vices a s a distin ct field of stu dy in cr ea sed
(Ber r y a n d P a r a su r a m a n , 1993). Du r in g th e
pa st 20 yea r s th e level of in ter est in ser vices
m a r k etin g h a s in cr ea sed, dr iven to a la r ge
exten t by th e in cr ea sin g im por ta n ce of ser vice in du str ies in m ost econ om ies (F isk et a l.,
1993).
[ 163 ]
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
[ 164 ]
Absen t fr om th is r esea r ch in to ser vices h a s
been a n exten sive exa m in a tion of edu ca tion
a s a specific m a r k etin g pr oblem . Lik e m a n y
oth er “pr ofession a l ser vices” edu ca tion h a s
ten ded to esch ew m a r k etin g (Mor ga n , 1991).
Despite th is n e glect, edu ca tion r em a in s a
ser vice ca pa ble of tr ea tm en t a s a n y oth er in
ter m s of m a r k etin g th eor y. In doin g th is, a n
im por ta n t sta r tin g-poin t is th e cla ssifica tion
of edu ca tion a s a m a r k eta ble ser vice.
Lovelock (1983) h a s offer ed a u sefu l con ceptu a l fou n da tion for r esea r ch in to ser vices
m a r k etin g. Th is in volves five cr iter ia , ea ch of
wh ich is exa m in ed on fou r dim en sion s. Usin g
th is fr a m ewor k it is possible to descr ibe edu ca tion ser vices a s h avin g th e follow in g
ch a r a cter istics:
1 T h e n a tu re of th e ser vice a ct. Th e edu ca tion
ser vice a ct is dir ected a t people (th eir
m in ds r a th er th a n th eir bodies). It is pr im a r ily “people ba sed” r a th er th a n “equ ipm en t ba sed” (Th om a s, 1978), a n d in volves
la r gely in ta n gible a ction s (Sh osta ck , 1977).
2 T h e rela tion sh ip w ith th e cu stom er. E du ca tion in volves a len gth y a n d for m a l r ela tion sh ip w ith th e clien t a n d a con tin u ou s
deliver y of th e ser vice. Stu den ts h ave wh a t
Lovelock (1983) r efer s to a s a “m em ber sh ip” r ela tion sh ip w ith th e ser vice
pr ovider. Th is offer s th e ser vice pr ovider
a n oppor tu n ity to develop str on g clien t
loya lty a n d en h a n ced clien t ser vice
fea tu r es.
3 T h e lev el of cu stom iz a tion a n d ju d gem en t
in ser vice d eliv er y. Som e ser vices r equ ir e
gr ea ter cu stom iza tion a n d ju dgem en t on
th e pa r t of ser vice pr ovider s th a n oth er s.
Th e exten t to wh ich edu ca tion ser vices a r e
cu stom ized is va r ia ble. Sm a ll tu tor ia ls or
in dividu a l su per vision a r e obviou sly m or e
h igh ly cu stom ized th a n m a ss lectu r es. In
m ost ca ses th e exten t to wh ich th e ser vice
pr ovider exer cises ju dgem en t in m eetin g
th e n eeds of in dividu a l stu den ts is h igh .
Th is is pa r ticu la r ly th e ca se w ith tea ch in g
sta ff. A pr oblem a r isin g fr om th is is th e
possibility th a t qu a lity ca n be a ffected du e
to va r ia bility of ser vice deliver y (N ich olls,
1987).
4 T h e n a tu re of d em a n d rela tiv e to su pply. A
ser vice ca n in volve a w ide spr ea d dem a n d
(e.g. electr icity) or a n a r r ow on e (e.g.
in su r a n ce). At th e sa m e tim e th e a bility of
ser vices to be in cr ea sed qu ick ly to m eet
flu ctu a tion s in dem a n d ca n va r y. Wh ile
electr icity ser vices ca n be in cr ea sed fa ir ly
qu ick ly to m eet pea k dem a n ds, h otel
a ccom m oda tion is m or e difficu lt to r e gu la te. In edu ca tion th e dem a n d is su bject to
r ela tively n a r r ow flu ctu a tion s over tim e,
yet su pply is som etim es difficu lt to
m a n a ge, w ith lim ita tion s pla ced on ava ila bility of sta ff a n d pla ces in cou r ses.
5 T h e m eth od of ser vice d eliv er y. Deliver y of
ser vices m ay a lso be cla ssified in to th ose
r equ ir in g eith er sin gle or m u ltiple site
ou tlets, a n d th e n a tu r e of th e cu stom er
in ter a ction w ith th e ser vice. Cu stom er s
m ay eith er m ove to th e ser vice pr ovider, or
th e ser vice pr ovider ca n m ove to m eet
th em . In ter n a tion a l edu ca tion ser vices
tr a dition a lly in volve th e stu den t com in g to
th e in stitu tion to com plete th eir cou r ses.
However, th is is ch a n gin g, w ith th e esta blish m en t of offsh or e tea ch in g pr ogr a m s
a n d dista n ce edu ca tion (Sou ta r a n d
Ma zza r ol, 1995). Moder n tech n ologies h ave
a lso en a bled r em ote ser vice deliver y
(Ha m er, 1993).
In a com pr eh en sive exa m in a tion of th e ser vices m a r k etin g liter a tu r e, Zeith a m l et a l.
(1985) iden tified fou r pr im a r y ch a r a cter istics
of ser vices:
1 in ta n gibility;
2 in sepa r a bility of pr odu ction a n d con su m ption ;
3 h eter ogen eity; a n d
4 per ish a bility.
All of th ese ca n be fou n d in edu ca tion . E a ch
pr odu ces pr oblem s th a t m u st be over com e by
deliber a te m a r k etin g str a te gies.
In ta n gibility is a m a jor distin gu ish in g
fea tu r e of ser vices, bu t a pplies pa r ticu la r ly to
edu ca tion wh er e th e specific n a tu r e of th e
ser vice offer in g is difficu lt to defin e. On e of
th e effects of in ta n gibility is th a t ser vices
ca n n ot be stor ed (Sa sser, 1976; Ber r y, 1980).
For edu ca tion in stitu tion s th is ca n pose pr oblem s th r ou gh eith er over cr ow din g or a la ck of
ca pa city. In ta n gibility a lso cr ea tes difficu lties
for th e pr otection of ser vices th r ou gh pa ten ts
(J u dd, 1968). Th is is a m a jor pr oblem fa cin g
m a n y ser vices w ith in in ter n a tion a l m a r k ets,
pa r ticu la r in Asia (LE K, 1994, p. 98). In ta n gibility a lso m a k es it difficu lt to ea sily display
or com m u n ica te ser vices to th e cu stom er
(Ra th m ell, 1966). Th is h a s been a pr oblem for
th e pr om otion of Au str a lia n in ter n a tion a l
edu ca tion , wh ich h a s r eceived cr iticism in
th e pa st for su pplyin g in su fficien t deta il a n d
ta k in g a glossy “tou r isty” a ppr oa ch to pu blicity m a ter ia ls (AGB, 1992). F u r th er, th e settin g
of pr ices in m a n y ser vice in du str ies is m a de
m or e difficu lt by in ta n gibility (Dea r den , 1978;
Th om a s, 1978). Fee settin g w ith in in ter n a tion a l edu ca tion h a s been on e of th e m or e
con ten tiou s issu es (Ha r r is a n d J a r r ett, 1990).
Th e difficu lty in sepa r a tin g pr odu ction
fr om con su m ption in ser vices poses a ddition a l pr oblem s. On e of th e pr in cipa l ou tcom es of th is a spect of ser vices is th e n eed to
in volve th e cu stom er in th e pr odu ction of th e
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
ser vice (Boom s a n d N yqu ist, 1981). Th is is
pa r ticu la r ly th e ca se w ith edu ca tion , wh er e
stu den t pa r ticipa tion in th eir lea r n in g
pr ocess is a cr itica l fa ctor in deter m in in g
su ccess (Sh u ell a n d Lee, 1976, pp. 4-9).
An oth er a spect of th is sa m e pr oblem is th e
lik elih ood th a t m or e th a n on e con su m er w ill
be in volved togeth er in th e pr odu ction of th e
sa m e ser vice (Geor ge, 1977; Gr on r oos, 1978).
E du ca tion h a s lon g been u n der ta k en w ith in a
gr ou p a n d h a s been viewed a s a n im por ta n t
cu ltu r a l tr a n sm ission pr ocess (Sin gleton ,
1974). Most edu ca tion in stitu tion s a r e “socia lisin g or ga n isa tion s”, design ed to pr ocess
la r ge gr ou ps of people (Br im a n d Wh eeler,
1966, p. 57). Th is con cen tr a tion of stu den ts
in to m a ss lectu r es or la r ge cla sses w ith com m on “cor e cu r r icu la ” is a n en deavou r by
in stitu tion s to over com e a n oth er pr oblem
fa cin g ser vices – th e difficu lty of cen tr a lisin g
pr odu ction (Upa h , 1980). Un for tu n a tely, h igh
stu den t-tea ch er r a tios do little for th e developm en t of qu a lity lea r n in g ou tcom es du e to
th e in dividu a l differ en ces between peoples’
lea r n in g beh aviou r s (Ridin g, 1977, pp. 111-29).
Th e h eter ogen eity of ser vices poses sign ifica n t pr oblem s in th e a r ea of qu a lity con tr ol
a n d sta n da r disa tion (Ber r y, 1980; Boom s, a n d
Bitn er, 1981). Qu a lity m a n a gem en t w ith in
edu ca tion is a m a jor focu s of a tten tion for
cou n tr ies su ch a s Au str a lia , F r a n ce, th e UK
a n d USA (Ba ldw in , 1991; Ma r cea u , 1993;
Ha r m a n , 1994; Lin dsay, 1994; E dm on d, 1995).
F in a lly, th e per ish a bility of ser vices m ea n s
th a t th ey ca n n ot be pla ced in to in ven tor y a n d
th er eby cr ea tin g th e pr oblem of u n der or over
su pply (Sa sser, 1976).
Critical success strategies for
marketing international education
Th e specia l ch a r a cter istics of edu ca tion
descr ibed a bove cr ea te a ddition a l pr oblem s
for in stitu tion s a ttem ptin g to r ecr u it
offsh or e. E du ca tion in stitu tion s seek in g to
a ch ieve su ccess in in ter n a tion a l m a r k ets
m u st u n der ta k e a r a n ge of a ctivities design ed
to a ttr a ct pr ospective stu den ts fr om a r ou n d
th e wor ld. For m a n y stu den ts a n d th eir fa m ilies, th e decision to stu dy over sea s is on e of
th e m ost sign ifi ca n t a n d expen sive in itia tives
th ey w ill h ave ever u n der ta k en . F u r th er
pr oblem s m ay a r ise a s a r esu lt of differ en ces
between va r iou s ta r get m a r k ets, for exa m ple
In don esia is qu ite differ en t to J a pa n .
Per h a ps a s a r esu lt of th is th e m a r k etin g of
a n edu ca tion in stitu tion w ith in in ter n a tion a l
m a r k ets r equ ir es both sen sitivity a n d soph istica tion . Rela tively little h a s been w r itten on
th e m a r k etin g of edu ca tion w ith in in ter n a tion a l m a r k ets (Altba ch et a l., 1985; Altba ch
a n d Wa n g, 1989; Sm a r t a n d An g, 1992b). It is
th er efor e difficu lt to a pply a n y r ea dy-m a de
str a te gies or solu tion s to th e pr oblem s fa cin g
in stitu tion ’s in th eir m a r k etin g a ctivities.
An exa m in a tion of th e liter a tu r e r ela tin g to
ser vices m a r k etin g a n d com petitive a dva n ta ge, a s well a s discu ssion s w ith a pa n el of
exper ts loca ted w ith in th e in ter n a tion a l
offices of sever a l Au str a lia n u n iver sities,
iden tifi ed 17 fa ctor s cr itica l to th e su ccess of
edu ca tion in stitu tion s oper a tin g in in ter n a tion a l m a r k ets. Th ese “cr itica l su ccess fa ctor s” a r e exa m in ed in th e follow in g su bsection s.
Quality of reputation, and level of market
recognition/ profile
Th ese two fa ctor s h ave been h igh ligh ted in
sever a l stu dies a s bein g im por ta n t to th e
developm en t of com petitive a dva n ta ge (Aa ker,
1989; 1991; Ha ll, 1992; 1993). Th ey a r e n ot iden tica l to ea ch oth er a lth ou gh th ey a r e closely
r ela ted. In m a r k etin g edu ca tion th e su ccess of
Ivy Lea gu e in stitu tion s, for exa m ple, is lin ked
to th eir im a ge a n d r epu ta tion r ega r dless of
th eir tea ch in g qu a lity (Hu ber, 1992). Aa ker
(1989) fou n d th a t m a n a ger s of ser vice en ter pr ises r a n k ed a “r epu ta tion for qu a lity” a n d
“n a m e r ecogn ition / h igh pr ofile” a s sign ifica n t sou r ces of com petitive a dva n ta ge.
Possession of international strategic
alliances or coalitions
Th e im por ta n ce of possessin g in ter n a tion a l
str a tegic a llia n ces or coa lition s h a s fea tu r ed
in th e liter a tu r e a s a sou r ce of com petitive
a dva n ta ge. Por ter a n d F u ller (1986) n ote th e
im por ta n ce of coa lition s to in ter n a tion a l
m a r k etin g. Th e pr im a r y ben efits of coa lition s
bein g th e a bility to ga in : “econ om ies of sca le”;
“a ccess” (to distr ibu tion ch a n n els, ca pita l,
loca l k n ow ledge etc.); “r edu ction of r isk ”; a n d
th e a bility to sh a pe com petition . Coa lition
a ctivity ca n be a sou r ce of com petitive a dva n ta ge (Du n n in g a n d Pea r ce, 1985; Oh m a e, 1985).
Th e eviden ce of th is is su ggested by th e r ecen t
gr ow th in coa lition a ctivity a m on g edu cation
ser vices expor ter s (Scott, 1994). With in th e
in ter n a tion a l bu sin ess com m u n ity th e tr en d
h a s been tow a r d th e for m a tion of str a tegic
a llia n ces, a lth ou gh ca r e n eeds to be ta ken to
en su r e th a t th e n a tu r e of th e a llia n ce is
clea r ly u n der stood w ith per for m a n ce ben ch m a r k s esta blish ed (Pek a r a n d Allio, 1994).
Possession of offshore teaching programs,
and recruiting offices
Th e in sepa r a bility of pr odu ction a n d con su m ption in cr ea ses th e n eed for in ter n ation a l
ser vices expor ter s to in tegr a te for w a r d in to
th e over sea s m a r ketin g ch a n n el a n d esta blish
“for eign m a n u fa ctu r in g fa cilities” (Nicou la n d,
[ 165 ]
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
1989). Ser vices su ch a s edu ca tion involve a
h igh degr ee of “con su m er / pr odu cer in ter a ction ” cr ea tin g a str on g desir e for dir ect con tr ol
a n d pr esen ce by th e pr odu cer du r in g th e ea r ly
ph a ses of expor t developm en t (Va n er m er we
a n d Ch a dw ick , 1989). E r r a m illi (1991) su ppor ts
th is view. Ser vice expor ter s pr efer to r eta in a
h igh level of con tr ol over th eir expor t ch a n n el
u n til th eir exper ien ce w ith in th e m a r ket
in cr ea ses. Th e degr ee of for w a r d in tegr a tion
m ay be a fu r th er sou r ce of com petitive a dva n ta ge for ser vice en ter pr ises in in ter n ation a l
m a r kets.
Advice fr om th e exper t pa n el su ggested th a t
offsh or e tea ch in g pr ogr a m s a n d offsh or e
r ecr u itm en t offices m igh t a lso offer a sou r ce
of com petitive a dva n ta ge to in stitu tion s
en ga ged in in ter n a tion a l edu ca tion . Th is w a s
su ppor ted by r esea r ch su ggestin g th a t ser vice
en ter pr ises wer e m or e lik ely to in tegr a te
for w a r d in to th e expor t ch a n n el du e to th e
in sepa r a bility of pr odu ction a n d con su m ption
(E r r a m illi a n d Ra o, 1990). An em pir ica l stu dy
u sin g th e P IMS data ba se u n der ta k en by
Bh a r a dw a j a n d Men on (1993) fou n d th a t for w a r d in tegr a tion in cr ea sed th e m a r k et sh a r e
of ser vice en ter pr ises a n d h a d a sign ifica n t
positive effect on th eir fin a n cia l per for m a n ce.
Quality and expertise of staff
Th e a bility of in stitu tion s to r ecr u it a n d
r eta in qu a lity sta ff w a s exa m in ed a s a cr itica l
su ccess fa ctor. Bh a r a dw a j et a l. (1993) h igh ligh t th e im por ta n ce of or ga n isa tion a l lea r n in g a n d exper tise a s a sou r ce of com petitive
a dva n ta ge. In th e edu ca tion ser vices in du str y,
for exa m ple, stu den ts select cou r ses on th e
r epu ta tion of tea ch in g sta ff (Hu gh es, 1988).
Win ter (1987) su ggests th a t or ga n isa tion a l
lea r n in g is a sou r ce of com petitive a dva n ta ge
if two cr iter ia a r e m et: th e lea r n in g is “ta cit”
a n d n ot ea sily copied by com petitor s, a n d th e
k n ow ledge u n der lyin g th e exper tise is com plex (th u s m a k in g im ita tion difficu lt).
Organisational culture
Th e r ole of cu ltu r e in en h a n cin g or ga n isa tion a l per for m a n ce h a s been w idely
su ppor ted in th e liter a tu r e (Peter s a n d Wa ter m a n , 1982; Ba r n ey, 1986), in pa r ticu la r th e
n eed to develop a cu stom er or ien ted ser vice
cu ltu r e (Gr on r oos, 1990). Th is w a s exa m in ed
a s a poten tia l cr itica l su ccess fa ctor. Ma n a gin g cu ltu r e for su sta in a ble com petitive
a dva n ta ge r equ ir es ca r efu l a tten tion to be
pa id to th e la n gu a ge a n d beh aviou r u sed
w ith in th e en ter pr ise, a s well a s th e va lu es
a n d beliefs (F iol, 1991). Th e sym bols u sed to
defin e th e or ga n isa tion ’s str u ctu r e a n d
beh aviou r of its m em ber s ca n a lso play a
decisive r ole in defin in g th e n a tu r e of th e
cu ltu r e (Ba r ley, 1983).
[ 166 ]
Innovation
Th e de gr ee to wh ich a n en ter pr ise en cou r a ges in n ova tion h a s been viewed a s im por ta n t to developin g com petitive a dva n ta ge
(McIn tyr e, 1982; Qu in n , 1985, p. 79; Ta k eu ch i
a n d N on a k a , 1986; Va n Den Ven , 1986). Th e
im por ta n ce of or ga n isa tion a l cu ltu r e to su sta in a ble com petitive a dva n ta ge h a s been
ou tlin ed by Ba r n ey (1986) wh o n otes th a t
wh ile cu ltu r e n eeds to be fir m ly ba sed w ith in
th e or ga n isa tion , it sh ou ld a lso be flexible to
en cou r a ge in n ova tion . Gr on r oos (1990) r efer s
to th e n eed for ser vice en ter pr ises to develop
cu stom er or ien ted ser vice cu ltu r es in wh ich
th e or ga n isa tion ch a r t is in ver ted a n d cu stom er a n d fr on t-lin e sta ff becom e th e pr im a r y focu s. Th e a bility of cu ltu r e to pr ovide a
sou r ce of com petitive a dva n ta ge is a lso lin k ed
to its a bility to gen er a te str a te gica lly va lu a ble in n ova tion via th e pr ocess of or ga n isa tion a l lea r n in g (Willia m s, 1992). A en ter pr ise
n eeds to develop str on g cor e va lu es th a t
em ph a size in n ova tion a n d flexibility in or der
develop su sta in ed su per ior fin a n cia l per for m a n ce (Ba r n ey, 1986).
Effective use of information technology
and technical superiority
Por ter a n d Milla r (1985) h ave em ph a sised th e
im por ta n ce of in for m a tion tech n ology to th e
a ch ievem en t of com petitive a dva n ta ge. Th e
effective u se of in for m a tion tech n ology w a s
con sider ed a s a poten tia l sou r ce of com petitive a dva n ta ge. Also exa m in ed w a s th e level
of tech n ica l su per ior ity w ith in th e in stitu tion . Sin ce th e em er gen ce of m oder n in for m a tion tech n ology th e va lu e of com pu ter s to th e
developm en t of com petitive a dva n ta ge h a s
been h igh ligh ted (Ger stein a n d Reism a n ,
1982). In for m a tion tech n ology h a s been
viewed a s offer in g en ter pr ises th e a bility to
a dopt “gen er ic” position in g str a te gies. Com pu ter a ided design (CAD) or com pu ter a ided
m a n u fa ctu r in g (CAM) ca n a ssist in a ch ievin g
cost lea der sh ip, wh ile differ en tia tion ca n be
a ssisted by selected in for m a tion tech n ologies
(P a r son s, 1983).
Financial resources
Th e im por ta n ce of fin a n cia l per for m a n ce a s a
sou r ce of com petitiven ess h a s been h igh ligh ted
in th e liter atu r e (Bu zzell a n d Ga le, 1987).
Ability to offer a broad range of courses/
programs
Th e possession of econ om ies of scope h a s
been su ggested a s a poten tia l sou r ce of com petitive a dva n ta ge in in ter n a tion a l m a r k etin g (Ta k eu ch i a n d Por ter, 1986). Discu ssion s
w ith th e exper t pa n el su ggested th a t a n in stitu tion ’s a bility to offer a br oa d r a n ge of
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
cou r ses a n d pr ogr a m s w a s a poten tia l sou r ce
of com petitive a dva n ta ge.
Scale effects (strength of alumni and
market share)
Sca le econ om ies h ave been viewed a s a
sou r ce of com petitive a dva n ta ge (Bh a r a dw a j
et a l., 1993). With in th e qu estion n a ir e th e
possession of a str on g a lu m n i ba se, size of
stu den t popu la tion , size of ca m pu s a n d possession of a la r ge m a r k et sh a r e m ea su r ed
th is.
Advertising and promotion
Wh a tever th e m er its of a dver tisin g it h a s n ot
been w idely u sed w ith in edu ca tion m a r k etin g. A su r vey of in ter n a tion a l stu den ts in
Au str a lia fou n d th a t on ly som e 3 to 8 per cen t
of r espon den ts (depen din g u pon type of in stitu tion a tten ded e.g. u n iver sity, secon da r y,
E LICOS) cla im ed m a ss m edia a dver tisin g to
be th eir m a in sou r ce of in for m a tion pr ior to
selectin g th eir in stitu tion (Ha r r is a n d Rh a ll,
1993, p. 46). Per h a ps its m ost sign ifica n t wea k n ess is th e per ception th a t a ppea r s to exist
a m on g m a n y pr ospective in ter n a tion a l stu den ts th a t in stitu tion s wh ich a dver tise ca n n ot be of h igh qu a lity (AGB, 1992).
Resea r ch in to th e a dver tisin g of ser vices
em ph a sizes th a t it r equ ir es a differ en t
a ppr oa ch to m or e con ven tion a l pr odu cts
(Ba teson , 1979; Zeith a m l et a l., 1985; Le gg a n d
Ba k er, 1991). It h a s been su ggested th a t edu ca tion in stitu tion s seek in g to m a k e u se of
a dver tisin g n eed to em ph a size th eir positive
qu a lities via u se of testim on ia ls (Da n ko,
1986). Adver tisem en ts th a t sh ow th e pr ospective con su m er h ow th e ser vice w ill be deliver ed to th em a r e lik ely to en h a n ce th e differ en tia tion of th e ser vice offer in g a n d m ay a lso
a ssist th e con su m er ’s u n der sta n din g a n d
eva lu a tion of th e ser vice (Day, 1992).
Use of private recruitment agents
Th e u se of r ecr u itm en t a gen ts to pr om ote
in ter n a tion a l edu ca tion h a s been on e of th e
m or e con tr over sia l issu es w ith in Au str a lia .
Som e com m en ta tor s h ave cr iticized a gen ts
for givin g fa lse in for m a tion a n d en ga gin g in
u n eth ica l pr a ctices (Davis, 1989). Oth er s h ave
in dica ted su ppor t for a gen ts a s a va lu a ble
for m of pr om otion (E dw a r ds a n d Br ow n e,
1991; Sm a r t a n d An g, 1992b; Ha r r is a n d Rh a ll,
1993). Su r veys of in ter n a tion a l stu den ts in
Au str a lia su ppor t th e view th a t a gen ts a r e a n
im por ta n t sou r ce of in for m a tion . On e stu dy
fou n d 29 per cen t of stu den ts su r veyed h a d
con su lted a n a gen t, a n d 20 per cen t h a d r elied
h eavily u pon th eir a dvice (Ha r r is a n d Rh a ll,
1993, p. 62). An oth er stu dy fou n d th a t n ea r ly
h a lf th e stu den ts su r veyed h a d u sed a gen ts
(DCT, 1993, p. 49).
Use of government promotion agencies
Th e effectiven ess of gover n m en t in for m a tion
cen tr es is difficu lt to ga u ge. A su r vey of in ter n a tion a l stu den ts in Au str a lia fou n d th a t 55
per cen t h a d n eith er u sed n or h ea r d of th e
Au str a lia n E du ca tion Cen tr es (AE Cs)
(loca ted in ten Asia -P a cific ca pita ls) (Ha r r is
a n d Rh a ll, 1993, p. 52). An oth er stu dy fou n d
AE Cs r ecr u ited on ly 7 per cen t of stu den ts
sa m pled com pa r ed to 33 per cen t fr om a gen ts
(Sm a r t a n d An g, 1993, p. 28). Th ese fin din gs
wer e su ppor ted by a n oth er sim ila r su r vey
u n der ta k en by th e Wester n Au str a lia Gover n m en t wh o fou n d th eir ow n WA E du ca tion
Offices (WAE Os) m or e effective in a ttr a ctin g
stu den ts to th a t sta te (DCT, 1993, p. 49). N ever th eless, a con sider a ble in vestm en t is bein g
m a de by cou n tr ies su ch a s Au str a lia , Ca n a da ,
th e UK a n d th e USA in esta blish in g a n d m a in ta in in g edu ca tion in for m a tion a n d pr om otion cen tr es in selected ta r get m a r k et cou n tr ies. Most a r e pr ofession a lly r u n , well
r esou r ced a n d distr ibu te in for m a tion to a
su bsta n tia l n u m ber of pr ospective stu den ts
ea ch yea r (DE E T, 1993).
A Survey of institutions
Du r in g 1994 a su r vey wa s m a iled to 1,255 edu cation in stitu tion s in Au str a lia , Ca n a da , New
Zea la n d, th e UK a n d USA. A fin a l u sable sa m ple of 315 wa s pr odu ced. Th e m a jor ity of th e
in stitu tion s (82 per cen t) wer e Au str a lia n , a n d
th e la r gest gr ou p wa s pr ivate secon da r y
sch ools. Oth er in stitu tion s com pr ised u n iver sities; TAFE colleges, polytech n ics; pr ivately
own ed bu sin ess colleges; En glish la n gu a ge
In ten sive Cou r ses for Over sea s Stu den ts (ELICOS) cen tr es; a ir tr a in in g sch ools; gover n m en t
sch ools or in stitu tion s; th eologica l colleges a n d
oth er in stitu tion s n ot cla ssified elsewh er e. Th e
sa m ple a lso com pr ised 46 per cen t of a ll Au str a lia n u n iver sities, a n d 81 per cen t of TAFE
college system s, 24 per cen t of Au str a lia n pr ivate bu sin ess colleges a n d 33 per cen t of a ll
ELICOS cen tr es listed in th e Com m on wea lth
r egister of In stitu tion s a n d Cou r ses for Over sea s Stu den ts (CRICOS) in 1994. Th is r egister
lists a ll Au str a lia n edu cation a l in stitu tion s
en ga ged in th e r ecr u itm en t of fu ll-fee payin g
over sea s stu den ts (FFPOS). Of th e n on -Au str a lia n in stitu tion s su r veyed, 47 per cen t h a d
en r olm en ts of over 10,000 stu den ts. Th e m a jor ity of th ese in stitu tion s wer e u n iver sities.
Th e su r vey w a s ta r geted a t th e in ter n a tion a l offices a n d m a r k etin g or r ecr u itm en t
m a n a ger s. J u st over h a lf (52 per cen t) of
r espon den ts listed th eir fu n ction a s a dm in istr a tion , a n d 34 per cen t a s m a r k etin g. Th e
m a jor ity (75 per cen t) h a d been in volved w ith
edu ca tion for over ten yea r s a n d th e aver a ge
[ 167 ]
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
len gth of tim e in th eir position s w a s six
yea r s. Seven ty-five per cen t of r espon den ts
sa id th ey wer e fr equ en tly in volved in pla n n in g decision s r ela tin g to in ter n a tion a l
m a r k etin g for th eir or ga n isa tion s. Th is su ggests th a t th e sa m ple r epr esen t a n exper ien ced a n d r ela tively exper t gr ou p.
Institutional rating of the critical
success factors
In stitu tion s wer e a sk ed to r a te th eir ow n
in stitu tion ’s per for m a n ce in ter m s of its
in ter n a tion a l m a r k etin g on ea ch of th e 17
“cr itica l su ccess fa ctor s”. Th e r a tin g for ea ch
item w a s pla ced on a seven -poin t sca le wh er e
1 = extr em ely poor per for m a n ce a n d
7 = extr em ely h igh per for m a n ce. Ta ble I
sh ow s th e r esu lts of th e in stitu tion s’
r espon ses to th ese qu estion s.
It ca n be seen in Ta ble I th a t th e m a jor ity of
r espon den ts con sider ed th eir in stitu tion ’s
per for m a n ce w a s best in th e a r ea s of th e
en cou r a gem en t of in n ova tion a n d th e qu a lity
a n d exper ien ce of sta ff. Th ese two item s wer e
r a ted sign ifica n tly h igh er th a n th e oth er 15 by
th e in stitu tion s a n d h a d m ea n r a tin g scor es
of 5.67 a n d 5.64 r espectively.
Factor analysis of the critical
success factors
A fa ctor a n a lysis w a s u n der ta k en of th e 17
“cr itica l su ccess” item s. In k eepin g w ith th e
Table I
Critic al suc c e ss fac to rs – pe rfo rmanc e rating by institutio ns
Success factor
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Performance rating
total sample means
Enc ourages innovation
Is highly suc c essful at rec ruiting and retaining quality, experienc ed
staff
Has a high-quality image
Has a strong c ustomer-oriented c ulture
Makes effec tive use of information tec hnology
Has strong financ ial resourc es
Is tec hnic ally superior to most in its field
Offers a broad range of c ourses and programs
Is well known
Has a very strong and ac tive Alumni
Has many international strategic allianc es and c oalitions
Has a very large overseas student population
Relies heavily on private rec ruitment agents
Relies heavily on government overseas promotion c entres
Has a large overseas advertising and promotion budget
Has many offshore rec ruitment offic es
Has many offshore teac hing programs
Note: 1 = low performanc e; 7 = high performanc e
[ 168 ]
5.67
5.64
5.32
5.23
5.20
5.19
5.15
4.95
3.87
3.52
3.06
2.93
2.83
2.68
2.59
2.22
1.72
pr in cipa l com pon en ts m eth od, eigen va lu es
gr ea ter th a n on e wer e selected to deter m in e
th e a ppr opr ia te n u m ber of fa ctor s. A va r im a x
r ota tion w a s a pplied to pr ovide ea se of da ta
in ter pr eta tion . Th e m ea su r e of sa m plin g
a dequ a cy for th e 17 item s w a s 0.83 in dica tin g
th a t th e item s wer e su ita ble for fa ctor in g
(Ka iser, 1974; Stew a r t, 1981). Ta ble II sh ow s
th e r esu lts of th is a n a lysis.
Th e fa ctor a n a lysis of th e 17 item s fou n d
fou r fa ctor s w ith eigen va lu es gr ea ter th a n
on e, wh ich a ccou n ted for 61 per cen t of va r ia n ce. All 17-fa ctor loa din gs yielded clea r
r esu lts w ith sta tistics r a n gin g fr om
0.54 to 0.84. F ive item s r ela tin g to in stitu tion a l “P r om otion a n d r ecr u itm en t” loa ded
on to th e fi r st fa ctor, wh ich w a s a ccor din gly
titled. A fu r th er five item s, r ela tin g to in stitu tion a l r epu ta tion , m a r k et pr ofile a n d str en gth
of fin a n ces a n d a lu m n i loa ded on to th e secon d fa ctor wh ich w a s la belled “Im a ge a n d
r esou r ces”. F ive item s r ela tin g to in ter n a l
cu ltu r e, sta ffin g a n d u se of tech n ology
gr ou ped in to a th ir d fa ctor, wh ich w a s
la belled “People a n d cu ltu r e”. Th e la st two
item s, r ela tin g to possession of in ter n a tion a l
str a te gic a llia n ces a n d offsh or e tea ch in g
pr ogr a m s, loa ded on th e fou r th fa ctor,
“Coa lition a n d for w a r d in te gr a tion ”.
Measures of market success
Mea su r in g su ccess w ith in th e in ter n a tion a l
edu ca tion sector is com plica ted by a va r iety
of in flu en ces. Recr u itm en t su ccess in ter m s
of tota l en r olm en ts is a n u n su ita ble m ea su r e
du e to th e differ en ces th a t exist between
va r iou s types of in stitu tion s. For exa m ple, a
u n iver sity w ith tota l stu den t en r olm en ts in
excess of 15,000 m igh t con sider th em selves
u n su ccessfu l if th ey fa iled to r ecr u it less th a n
100 in ter n a tion a l stu den ts. However, a pr iva te
secon da r y sch ool w ith in ter n a tion a l stu den t
en r olm en ts of on ly 75 m ay view itself a s su ccessfu l, pa r ticu la r ly if th is is th eir a n n u a l
qu ota set by gover n m en t policy a n d th ey
con sisten tly fill it w ith ou t difficu lty.
In or der t o a ccom m oda t e t h ese pr oblem s a
ser ies of fi ve qu est ion s w er e a sk ed wh ich
wer e design ed t o m ea su r e t h e r ela t ive su ccess of t h e in st it u t ion in r ecr u it in g in t er n a t ion a l st u den t s. Respon den t s w er e a sk ed t o
r a t e t h eir a gr eem en t w it h fi ve st a t em en t s
defi n in g t h e fi ve su ccess m ea su r es. T h e
r espon ses w er e r ecor ded on seven poin t
sca les wh er e 1 = st r on gly disa gr ee a n d
7 = st r on gly a gr ee. Ta ble III sh ow s t h e n a t u r e
of t h ese qu est ion s. It ca n be seen fr om t h e
t a ble t h a t t h e over a ll sa m ple did n ot r a t e
t h eir su ccess pa r t icu la r ly h igh w it h a ll m ea n
scor es below 5. An exa m in a t ion of t h e r a t in g
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
m ea n s for differ en t in st it u t ion a l t ypes t o t h e
fi ve it em s w a s u n der t a k en u sin g a n a n a lysis
of va r ia n ce (AN OVA) t est . T h is fou n d n o
differ en ces bet w een a n y of t h e t er t ia r y in st it u t ion s w it h t h e exce pt ion of t h e E LICOS
colle ges wh o wer e m or e lik ely t o a gr ee w it h
t h e st a t em en t t h a t w it h ou t over sea s st u den t
fees t h ey wou ld exper ien ce fi n a n cia l difficu lt ies. T h is is n ot su r pr isin g given t h a t su ch
in st it u t ion s a r e wh olly de pen den t u pon
in t er n a t ion a l st u den t s for t h eir su r viva l.
T h ese fin d in gs su ggest t h a t su ccess is
v iew ed in a sim ila r m a n n er by in st it u t ion s
r e ga r d les s of t h eir cou n t r y of or igin . Secon d a r y sch ools wer e fou n d t o b e d iffer en t t o
t h eir t er t ia r y cou n t er p a r t s w h ich m ay b e
exp la in ed by t h e sch ools n ot h av in g exp er ien ced t h e s a m e level of gr ow t h in in t er n a t ion a l st u d en t en r olm en t s a s h ave t h e
Table II
Fac to rs analysis o f institutio nal pe rfo rmanc e o n c ritic al suc c e ss fac to rs
Factor
loadings
M ean
scores
Use of private rec ruitment agents
0.84
2.83
Size of overseas advertising and promotion
budget
Possession of offshore rec ruitment offic es
Use of government information offic es overseas
Size of international student enrolments
0.77
0.72
0.71
0.54
2.59
2.22
2.68
2.93
Image and resources Level of market profile or rec ognition
(alpha = 0.74)
Strength of financ ial resourc es
Reputation for quality
Size and influenc e of alumni
Range of c ourses and programs
0.76
0.64
0.63
0.60
0.55
3.87
5.19
5.32
3.52
4.95
People and culture
(alpha = 0.77)
0.80
0.77
0.68
0.66
0.57
5.67
5.23
5.20
5.64
5.15
0.78
3.06
0.78
1.72
Factor label
Item
Promotion and
recruitment
(alpha = 0.82)
Level of innovation within the institutions’ c ulture
Level of c ustomer orientation within c ulture
Effec tive use of information tec hnology
Quality and expertise of staff
Level of tec hnic al superiority
Coalition and forward Possession of international strategic allianc es
integration
(alpha = 0.61)
Possession of offshore teac hing programs
The outlook over the next 3-6 years is for continued growth in overseas
student numbers
Growth in overseas student body has regularly been high
The financial benefits to the institution have regularly exceeded forecasts
or expectations
Demand for places from overseas students regularly exceeds supply
Without overseas student fees the institution would experience financial
difficulties
Note: 1 = strongly disagree; 7 = strongly agree
A factor analysis of the success
measures
T h e m ea su r e of sa m p lin g a d eq u a cy for t h e
five it em s m ea su r in g m a r k et su cces s w a s
0.75, su ggest in g su it a b ilit y for fa ct or a n a ly sis (Ka iser, 1974). T h e a n a ly sis of t h e five
it em s m ea su r in g m a r k et su ccess fou n d t wo
fa ct or s w it h eigen va lu es gr ea t er t h a n 1
w h ich a ccou n t ed for 70 p er cen t of va r ia n ce.
T h e r ot a t ed fa ct or loa d in gs y ield ed clea r
r esu lt s, w it h fou r of t h e five it em s gr ou p in g
in t o t h e fir st fa ct or, w h ich w a s la b elled
“Ma r k et su ccess”. T h e r em a in in g it em –
“w it h ou t over sea s st u d en t fees t h e in s t it u t ion wou ld exp er ien ce fin a n cia l d ifficu lt ies ”
– loa d ed on t o a secon d fa ct or w h ich w a s
r et a in ed a s a n in d e p en d en t va r ia ble. Ta ble
IV sh ow s t h e r esu lt s of t h is fa ct or a n a ly s is.
A t est of t h e r elia b ilit y of t h e fa ct or w a s
u n d er t a k en (Cr on b a ch , 1951). T h e r elia b ilit y
coefficien t for t h e fa ct or w a s 0.76 su gges t in g
t h a t t h e fa ct or con st r u ct w a s r elia b ly in d ica t ed by t h e fou r va r ia bles.
N o sign ifica n t differ en ce w a s fou n d
between th e Au str a lia n a n d over sea s ter tia r y
in stitu tion s in th eir m ea n r a tin g scor es for
th e fa ctor m a r k et su ccess su ggestin g th a t
cou n tr y differ en ces cou ld be ign or ed in fu r th er a n a lysis. A sign ifica n t differ en ce w a s
fou n d between th e sch ools a n d th e u n iver sities in th eir r a tin g of th e fa ctor, a lth ou gh th is
is n ot su r pr isin g given th e m a jor fl ow of feepayin g in ter n a tion a l stu den ts is in to th e
h igh er edu ca tion sector.
Estimation of the logistic
regression model
Table III
Re spo nde nt rating o f institutio nal suc c e ss rating o f que stio ns
Question
t er t ia r y in st it u t ion s. F u r t h er, t h e secon d a r y
sch ools a p p ea r m u ch less d e p en d en t u p on
in t er n a t ion a l st u d en t fees t h a n t h e t er t ia r y
in st it u t ion s for t h eir fin a n cia l secu r it y. Few
of t h ese fin d in gs a r e su r p r isin g a n d r eflect
t h e con cen t r a t ion of in t er n a t ion a l s t u d en t
n u m b er s w it h in t h e t er t ia r y sect or of t h e
in d u st r y.
M ean rating
4.33
3.68
3.22
2.85
2.58
Logistic r egr ession or logit a n a lysis is su ita ble wh er e a bin a r y or dich otom ou s depen den t va r ia ble exists. Th is pr ocedu r e estim a tes
th e coefficien ts of a pr oba blistic m odel,
involvin g a set of in depen den t va r ia bles th a t
best pr edict th e va lu e of th e depen den t va r ia ble. A positive coefficien t in cr ea ses th e pr oba bility, wh ile a n ega tive va lu e decr ea ses th e
pr edicted pr oba bility of th e ou tcom e bein g in
eith er of th e two depen den t va r ia ble ca tegor ies (Ha ir et a l., 1992, pp. 130-1). In pr edictin g th e pr oba bility of m u ltiple in depen den t
[ 169 ]
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
va r ia bles on a sin gle dich otom ou s depen den t
va r ia ble th e m odel u sed is:
1
P ( y = 1) =
1 + e–z
wh er e: z = β0 + β1x 1 + β2x 2 + … + βn x n
xn
= a set of in depen den t va r ia bles
= a n in ter cept ter m
β0
bn
= a set of pa r a m eter s for th e
in depen den t va r ia bles
e
= th e qu a n tity 2.71828+ , th e ba se of
n a tu r a l loga r ith m s
y
= th e dich otom ou s depen den t
va r ia ble, m a r k et su ccess
P(y = 1) = th e pr oba bility of a fir m bein g
cla ssified a s h igh or low su ccess.
Th e fa ctor m a r k et su ccess w a s con ver ted
in to a dich otom ou s va r ia ble com pr isin g
th ose in stitu tion s w ith low su ccess a n d th ose
w ith h igh su ccess. Th e m ea n r a tin g scor e for
th e en tir e sa m ple w a s 3.5 w ith a n or m a l
distr ibu tion . A cu t poin t of 4 w a s selected to
pr ovide two distin ct gr ou ps: th ose in stitu tion s w ith h igh m a r k et su ccess (m ea n = 5.21);
a n d th ose in stitu tion s w ith low m a r k et
su ccess (m ea n = 2.71).
Of th e 315 in stitu tion s 188 (65 per cen t) wer e
cla ssified a s low m a r k et su ccess, wh ile 103
(35 per cen t) wer e cla ssified a s h igh m a r k et
su ccess. An exa m in a tion of th e r ela tion sh ip
between cou n tr y of or igin a n d in stitu tion a l
type a n d m em ber sh ip of eith er of th ese two
ca te gor ies fou n d n o sign ifica n t a ssocia tion .
A logit a n a lysis w a s u n der ta k en u sin g th is
dich otom ou s su ccess m ea su r e a s th e depen den t va r ia ble a n d th e fou r cr itica l su ccess
fa ctor s: pr om otion a n d r ecr u itm en t, im a ge
a n d r esou r ces; people a n d cu ltu r e; a n d coa lition a n d for w a r d in te gr a tion a s th e in depen den t va r ia bles. A tota l of 286 of th e 315 ca ses
wer e u sed to estim a te th e m odel. Twen ty-n in e
ca ses wer e n ot in clu ded beca u se th ey wer e
m issin g da ta for on e or m or e of th e va r ia bles.
Th e fin a l m odel, wh ich con ta in ed two sign ifica n t ter m s, is sh ow n in Ta ble V. Both va r ia bles wer e sign ifica n t a t th e 0.05 level.
Th e fir st sign ifi ca n t va r ia ble in th e m odel
w a s th e fa ctor va r ia ble “Im a ge a n d
Table IV
Re sults o f fac to r analysis o f marke t suc c e ss me asure s
Factor label
M arket Success
(alpha = 0.76)
Item
Growth in overseas student enrolments
Financ ial benefits from international students
Demand for plac es regularly exc eeds supply
The outlook for the next 3 to 6 years is for
growth
Independent variable Without overseas student fees the institution
would experienc e financ ial diffic ulties
[ 170 ]
Factor
loadings
M ean
scores
0.85
0.79
0.74
3.68
3.22
2.85
0.64
4.33
0.89
2.58
r esou r ces” wh ich m ea su r ed th e level of m a r k et pr ofi le or r ecogn ition , th e str en gth of
fin a n cia l r esou r ces, r epu ta tion for qu a lity,
size a n d in flu en ce of a lu m n i a n d r a n ge of
cou r ses a n d pr ogr a m s. Th e positive coefficien t for th is ter m in dica ted th a t in stitu tion s
wh ich wer e iden tified a s h igh m a r k et su ccess
wer e m or e lik ely to be per for m in g better in
th e a r ea s a ssocia ted w ith th is fa ctor th a n
th ose in stitu tion s cla ssified a s low m a r k et
su ccess.
Th e secon d sign ifica n t ter m selected for
in clu sion in th e m odel w a s th e fa ctor va r ia ble
“Coa lition a n d for w a r d in te gr a tion ” wh ich
m ea su r ed th e possession of in ter n a tion a l
str a te gic a llia n ces a n d possession of offsh or e
tea ch in g pr ogr a m s. Th e positive sign for th is
ter m ’s coefficien t in dica ted th a t th ose in stitu tion s, wh ich possessed th ese a ttr ibu tes, wer e
m or e lik ely to be cla ssified a s h igh m a r k et
su ccess.
Goodness of fit of the model
On e m eth od of a ssessin g th e goodn ess of fit of
logistic m odels is to exa m in e th e –2LL m ea su r e. Th is m ea su r e is ca lcu la ted by th e SP SS
Logistic Re gr ession pr ocedu r e ea ch tim e a
m odel is developed. If a m odel fits per fectly,
th en th e va lu e for –2LL w ill be 0. Th e –2LL is
a lso ca lcu la ted for th e m odel th a t con ta in s
th e con sta n t on ly. Th is en a bles a n estim a tion
of th e level of im pr ovem en t ga in ed by a ddin g
th e m odel ter m s (N or u sis, 1993, p. 10). Th ese
two va lu es for –2LL a r e sh ow n in Ta ble VI.
–2LL for th e m odel w ith th e con sta n t w a s
fou n d to be 372.64, wh ile th a t for th e fu ll
m odel w a s 322.18.
Seein g h ow well th e m odel cla ssifies th e
da ta is a n oth er w ay of deter m in in g h ow well
a logistic m odel per for m s. Th is in volves a
com pa r ison of th e obser ved n u m ber of ca ses
for ea ch sta te of th e depen den t va r ia ble w ith
th e pr edicted n u m ber of ea ch sta te a s der ived
fr om th e m odel (Wr igley, 1985, p. 50). Ta ble VI
illu str a tes th e cla ssifica tion per for m a n ce of
th e m odel.
Th e pr ior pr oba bilities in dica te th e pr obability of a ca se bein g cor r ectly cla ssified in to on e
of th e two gr ou ps befor e th e m odel is a pplied to
th e da ta (Afifi a n d Cla r k , 1984, pp. 263-4). Th e
r elative sizes of th e two popu la tion s in th e
cu r r en t m odel deter m in ed th e va lu e of 64.34
per cen t for th e pr ior pr oba bilities. Th e poster ior pr obabilities expr ess th e pr oba bility for
ea ch ca se of belon gin g to a pa r ticu la r gr ou p a s
deter m in ed by th e ch osen m odel (Afifi a n d
Cla r k , 1984, p. 262). Th e r esu lts of a pplyin g th e
m odel to th e da ta a r e sh ow n in th e bottom h a lf
of Ta ble VI. Th is sh ow s th a t th e m odel cor r ectly cla ssified 72.73 per cen t of th e 286 ca ses.
Tim Mazzaro l
Critic al suc c e ss fac to rs fo r
inte rnatio nal e duc atio n
marke ting
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 4 [1 9 9 8 ] 1 6 3 –1 7 5
Discussions with institutions over
the critical success factors
In or der to ga in a better u n der sta n din g of th e
n a tu r e of th ese su ccess fa ctor s a ser ies of
in -depth in ter view s wer e con du cted w ith
r epr esen ta tives fr om a selected sa m ple of 14
Au str a lia n in stitu tion s in Au str a lia .
Selection of th e 14 in stitu tion s w a s on th e
ba sis of size, in stitu tion type a n d r ela tive
exper ien ce w ith in th e in ter n a tion a l m a r k et.
Th e in stitu tion s in ter viewed in clu ded
u n iver sities; pr iva te bu sin ess or voca tion a l
colle ges, E LICOS colle ges, TAF E colle ges,
pr iva te secon da r y sch ools a n d a pilot tr a in in g
sch ool.
Du r in g th e in ter view s th e cr itica l su ccess
fa ctor s iden tifi ed in th e su r vey wer e